{"id":121,"date":"2024-12-14T17:35:40","date_gmt":"2024-12-14T17:35:40","guid":{"rendered":"https:\/\/karolpelc.com\/notes\/?p=121"},"modified":"2024-12-14T18:10:18","modified_gmt":"2024-12-14T18:10:18","slug":"services-stabilize-the-economy","status":"publish","type":"post","link":"https:\/\/karolpelc.com\/notes\/2024\/12\/14\/services-stabilize-the-economy\/","title":{"rendered":"Services stabilize the economy"},"content":{"rendered":"\n<p class=\"\">The service economy demonstrates a sustainable pattern of spending, supported by its inherent diversity and the essential nature of many services. This growth trajectory can only be significantly disrupted by a strong exogenous shock that affects multiple industries and leads to a recession. As a result, the service economy has gone into recession only twice in the last 25 years: during the pandemic and the Global Financial Crisis (GFC). Therefore, services have a stabilizing effect on the overall GDP trajectory. <\/p>\n\n\n\n<p class=\"\">Due to technological innovation, globalization, outsourcing, and the shift in consumer demand, the service sector has become a larger part of the economy. Now, it consistently accounts for around 77-78% of GDP. As a result, the US economy as a whole has become more resilient.<\/p>\n\n\n\n<p class=\"\">Depending on how AI is integrated into the economy, this might be challenged in the future. This is due to the expected large-scale job displacement of service jobs, reshaping consumer behaviour and uneven distribution of accelerated productivity.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"602\" height=\"276\" src=\"https:\/\/karolpelc.com\/notes\/wp-content\/uploads\/2024\/12\/4783624536484352345235432523214.png\" alt=\"\" class=\"wp-image-141\" style=\"width:702px;height:auto\" srcset=\"https:\/\/karolpelc.com\/notes\/wp-content\/uploads\/2024\/12\/4783624536484352345235432523214.png 602w, https:\/\/karolpelc.com\/notes\/wp-content\/uploads\/2024\/12\/4783624536484352345235432523214-300x138.png 300w\" sizes=\"auto, (max-width: 602px) 100vw, 602px\" \/><\/figure>\n\n\n\n<p class=\"\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The service economy demonstrates a sustainable pattern of spending, supported by its inherent diversity and the essential nature of many services. This growth trajectory can only be significantly disrupted by a strong exogenous shock that affects multiple industries and leads to a recession. As a result, the service economy has gone into recession only twice [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[18,28],"tags":[60,58,59,36,13,4],"class_list":["post-121","post","type-post","status-publish","format-standard","hentry","category-cycles","category-economic-growth","tag-economic-growth","tag-economy","tag-gdp","tag-market-reaction","tag-markets","tag-volatility"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/karolpelc.com\/notes\/wp-json\/wp\/v2\/posts\/121","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/karolpelc.com\/notes\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/karolpelc.com\/notes\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/karolpelc.com\/notes\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/karolpelc.com\/notes\/wp-json\/wp\/v2\/comments?post=121"}],"version-history":[{"count":3,"href":"https:\/\/karolpelc.com\/notes\/wp-json\/wp\/v2\/posts\/121\/revisions"}],"predecessor-version":[{"id":142,"href":"https:\/\/karolpelc.com\/notes\/wp-json\/wp\/v2\/posts\/121\/revisions\/142"}],"wp:attachment":[{"href":"https:\/\/karolpelc.com\/notes\/wp-json\/wp\/v2\/media?parent=121"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/karolpelc.com\/notes\/wp-json\/wp\/v2\/categories?post=121"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/karolpelc.com\/notes\/wp-json\/wp\/v2\/tags?post=121"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}