Financialization of the U.S. Economy: Insurance & Finance Rule, Tech & Software Red-Hot, Health Care Grows Relentlessly

by Wolf Richter
Wolf Street

This is the biggest part of the US economy. Or why we can all just sue each other to boost GDP.

Services-producing industries – not including government services – dominate the US economy, amounting to the equivalent of 70% of overall GDP by value added, and to 80% of the private sector economy. As long as the services-producing industries grow enough, it’s tough for the US economy to fall into a recession. And in the third quarter, according to the Commerce Department’s Quarterly Selected Services Estimates, revenues by the services-producing industries rose 4.9% from a year ago, to a record $4.11 trillion (not seasonally adjusted). For the first three quarters of the year, revenues rose 5.2% to $12.1 trillion:

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