Heimler's History: Transformation of the American Economy (1980-Present)

Overview

Focus on Unit 9 of the AP U.S. History curriculum (1980-present).
Key themes:
- Transformation of the American economy through technological innovations.
- Increased U.S. participation in the global economy.

Computers and Digital Technology
- Origin of computers in the U.S. in 1946 with massive sizes.
- Innovations like transistors and microprocessors reduced computer sizes.
- 1977: Apple introduced a home computer.
- 1980s: IBM's PCs became common in workplaces.
Internet
- 1990s saw widespread internet use.
- Initially a network of interconnected pages accessible worldwide.
- Email replaced traditional communication methods.
- Napster and file-sharing revolutionized the music industry.
- Online shopping with platforms like Amazon transformed retail.

Productivity and Economy
- Digital revolution increased productivity starting in 1995.
- Productivity did not significantly boost living standards, partially due to changing work nature and income disparity.
Nature of Work
- Decline in manufacturing within the U.S.; rise in service sector jobs.
- Increasing outsourcing of manufacturing, notably to China.
- Free trade agreements like the General Agreement on Tariffs and Trade (1994) facilitated outsourcing.
Labor Unions
- Decline from 35% unionized workers in 1954 to 12% today.
- 1981: Reagan fired striking air traffic controllers, weakening unions.
Rise of the Service Sector
- Service sector provides intangible products like education, legal services, etc.
- 71% of American jobs currently in the service sector.

Income Gap
- Growing gap between wealthy and middle class.
- Top 1% saw a 275% increase in wealth (1979-2007); middle 60% saw a 40% increase.
- Causes include outsourcing high-paying jobs and tax restructuring favoring top earners.

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