Since World War II, the percentage of American jobs in the service sector

has grown steadily. What are the benefits and drawbacks of a service-based

economy?

Benefits of a service-based economy:

Promotes the development of a high-skilled population: many jobs in the service sector require very high intellectual skills, for example, computer programming.

The economy is more flexible and adaptable: it has been shown that in a service-based economy, the economy is more flexible and can more easily adapt to economic changes than industry or agriculture based economies.

Promotes the conservation of natural resources: a service-based economy may use less natural resources like oil, natural gas, or coal, than an industrial economy.

Drawbacks of a service-based economy:

High trade deficits: a service-based economy usually requieres a high amount of imported goods that are not produced domestically. This increases the trade deficit.

Low-skilled workers may become permanently unemployed: this is because service-based economies tend to favor high skilled workers, while low skilled workers may become affected for long periods of time due to the losses of industrial and agricultural jobs.

these conditions long with a short growing season made farming difficult.

explanation:

the north has a climate of warm summers and snowy cold winters. the terrain is rocky, hilly, and not good for farming.