HIST 128 Lecture 4: Postindustrial America
Postindustrial America
A New Economic Climate Takes Shape
1975-present
Key words
Rustbelt
Chris Walley’s father
Deindustrialization
Economic Restructuring
• Fall of the Soviet Union
• Technology
• Foreign competition/ Globalization
• 9/11 and wars in Iraq and Afghanistan
• Rise of conservatism
• Election of Obama
1970’s and 1980’s witness huge economic changes as the prosperity of the post war began to recede.
Economic hard times began to accelerate especially in the MidWest brought on by
Globalization/Economic Restructuring
• Globalization compelled American Businesses to restructure - had to shut down inefficient and
unprofitable manufacturing
• Move away from manufacturing to service or knowledge based economy → technology
• Globalization didn’t begin in the 1970’s
Deindustrialization: systematic move from manufacturing
Economic Restructuring
1. Decline of manufacturing operations
• Hundreds shut down plants and moved overseas
ex) car industry → first shifted operations to the south and then to mexico (competition from Japan)
ex) steel mills → went automatic so more people lose jobs/ technology eliminating manpower
• Illinois, PA, Michigan, Ohio center place of industrial activity - population loss = Rust Belt
2. Rise of knowledge and service based economy
• Driving force of the American economy of 70s, 80s, and 90s
• Professional services → retail, engineering
• Service sector jobs have a long history in US → banking and finance industry
• New communications technology
*computer*
• While manufacturing declined wealth and prosperity persisted
• Decline in manufacturing was connected to the rise of a service economy → interactive dynamic
Wal-Mart
> nation’s leading retailer
> founded in 1950s by Sam Walton
> Bentonville, AK
> wanted to locate stores in out of the way towns in South and the MidWest where there was a lot of land
and labor
> by 1980s grew to global corporation bringing in goods from over 50 countries
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Economic restructuring: fall of the soviet union, technology, foreign competition/ globalization, 9/11 and wars in iraq and afghanistan, rise of conservatism, election of obama. 1970"s and 1980"s witness huge economic changes as the prosperity of the post war began to recede. Economic hard times began to accelerate especially in the midwest brought on by. Globalization/economic restructuring: globalization compelled american businesses to restructure - had to shut down inefficient and unprofitable manufacturing, move away from manufacturing to service or knowledge based economy technology, globalization didn"t begin in the 1970"s. *computer: while manufacturing declined wealth and prosperity persisted, decline in manufacturing was connected to the rise of a service economy interactive dynamic. > wanted to locate stores in out of the way towns in south and the midwest where there was a lot of land and labor. > by 1980s grew to global corporation bringing in goods from over 50 countries.
