The Shift to a Service Economy in America

Reasons for the Shifting to Service Economy 1
Reasons for the Shifting to Service Economy
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Reasons for the Shifting to Service Economy 2
Reasons for the Shifting to Service Economy
Introduction
The rising population played a critical role in changes evident in the American
economy. This made the agro-based economy irrelevant because it could not provide enough
job opportunities.1 The Americans farmers were self-sufficient, non-pecuniary, and non-
commercial people. These farmers never prioritized personal capacity to exploit
opportunities. However, these farmers viewed their farming life as an honest industry where
the spirit of equality was abundant. The farmers could make independent decisions to
produce. In the fifteenth century, the culture of capitalism emerged because of the changing
economic and political factors. The agricultural and feudal societies shifted to capitalism thus
enhancing a new consumer-oriented system.2 Although the society was an agrarian, the
commercialization and commercial goals made inroads into the agricultural classes. The
American society became more commercial thus making the non-commercial agrarian values
irrelevant.3 Farming as business replaced family for self-sufficiency. The youths migrated to
the cities and towns to pursue their careers.4 The city economy offered opportunities as the
urban market expanded. Therefore, the new economic setting transformed the ethics and
civics regarding the meaning of an American.
Reasons for the Shifting to Service Economy
1 Richard Hofstadter, "The Myth of the Happy Yeoman," American Heritage 7, no. 3 (April 1956), par.
8. 2 Michael Matheson Miller, “Does Capitalism Destroy Culture?” Intercollegiate Review, 15 July 2013.
https://home.isi.org/does-capitalism-destroy-culture (accessed October 3, 2017).
3Robert B. Reich, “How Capitalism is Killing Democracy,” FP. 12 October 2009, par. 4.
http://foreignpolicy.com/2009/10/12/how-capitalism-is-killing-democracy/ (accessed October 4, 2017).
4T J Hatton and Jeffrey G. Williamson, The Age of Mass Migration: Causes and Economic Impact
(New York: Oxford University Press, 1998), p. 16.
http://www.dawsonera.com/depp/reader/protected/external/AbstractView/S9780195353792 (Accessed October
4, 2017).

Reasons for the Shifting to Service Economy 3
The urban market began growing as youths abandoned the rural areas for towns. The
colonial New England had enjoyed an intimate connection between the adjacent countryside
and small town. The rural-urban hostility became evident because the community of interests
sought occupations in towns. As a result, it became critical for the authority to establish the
township plan. Without a doubt, the urban markets grew ostensibly because the settlements
had moved west. The rural farmers had options market to seek solace in commercial
production to feed the growing urban market.5 The farmers, who had distracted cities turned
to be self-sufficient and became the economic and vocational groups. It became critical for
these farmers to reassert the significance of agriculture in creating wealth. In fact, without
farmers cities could not stand because farmers were the voice of democracy. The self-
sufficient economy helped farmers to stay in the market and feed their families. The culture
of saving became evident because, in the self-sufficient economy, the cost of production was
low. This helped farmers to maximize profits leading to the commercialism culture. The
success of agriculture was evident in the cotton, tobacco, indigo, and rice planters of the
South while the states engaged in the meet, the grain, and cattle exports. Trade policies such
exports promoted a self-sufficient economy.6 The yeoman of old became irrelevant following
the adoption of strong trading infrastructure. Indeed, the country builds good road networks
to facilitate rural free delivery.
The technological changes also transformed the American economy. Without a doubt,
the new technologies introduced new processes and efficiencies leading to improved
production. In fact, with technology, transportation, communication, and mechanized farming
techniques emerged.7 The government and private sectors used the technology to promote the
service sectors thus create more employment opportunities for the skilled Americans.
5 Hofstadter par. 15.
6 Ibid. par. 6.
7 Charles Hirschman and Elizabeth Mogford, “Immigration and the American Industrial Revolution
from 1800 to 1920," Social Science Research, 38, no. 4, p. 899.