Question

In the 1970s, the u.s. economy began to shift away from manufacturers. deindustrialization continued into the 1990s. explain why this was so and who was affected by this shift. what were the benefits and other consequences of this shift

Answer 1

The U.S. economy's shift away from manufacturing in the 1970s was driven by globalization, technological advances, and competition from abroad. The Rust Belt felt the impact through job losses and factory closures, while the Sunbelt regions experienced growth. This transition had complex effects, including the loss of manufacturing jobs, changes to consumer behavior, and the rise of the information economy.

Step-by-step explanation:

In the 1970s, the United States witnessed a significant economic transition from a manufacturing-focused economy towards a service-oriented and information-based economy. This period marked the onset of deindustrialization, which carried on into the 1990s. The earliest affected sector was the textile industry, where increased manufacturing efficiency and the availability of cheaper goods shifted consumption patterns from necessity to fashion-driven choices.

As globalization took hold, U.S. production, which accounted for 40 percent of global goods and services in 1950, dwindled to 25 percent by the 1970s. This shift was influenced by various factors such as domestic inflation, competition from abroad, the oil embargoes, and a general increase in global oil prices. The outcome was a growing trade deficit, with the U.S. importing more than it exported, and concerns regarding the military implications of a weakened manufacturing base.

Rust Belt cities experienced a profound impact, with factories closing and industrial wages stagnating, causing a population shift towards the Sunbelt regions due to job migration. Additionally, between 2000 and 2010, the United States lost approximately five million manufacturing jobs, often to countries with lower labor costs. Technological advancements further reduced the need for manufacturing jobs as automated systems and computers performed tasks that once required human labor.

Government policies and economic conditions changed in response, with some leaders pushing for international economic integration. The Canada-U.S. Free Trade Agreement was an example of such an effort. But these shifts also had ripple effects, such as the automotive industry crisis during the subprime mortgage lending crisis and increasing fuel costs, which shifted consumer preferences away from gas-guzzling SUVs and towards more fuel-efficient vehicles.

Overall, the economic downturn affected not only the industrial sector but also shaped the governmental and social policies in regard to welfare programs and environmental concerns. The transition to an information economy and the globalization of U.S. businesses were hallmarks of this era. This evolution of the economy brought both challenges and opportunities as new industries emerged and others declined.

Answer 2

That was because companies started outsourcing businesses because it was cheaper to have a factory in Asia or South America, and just produce there and bring the goods back home than to pay US workers. The people affected were people who worked in the business as manufacturers and physical laborers. The economy shifted to services like tourism or telecommunication services. The benefits were that a new workforce was created and that people started developing the society more. A bad thing is that a lot of people lost their jobs and weren't trained to become a part of this new workforce.