Watergate, and also if you early years of american conservative movement. This brings us to the 1970s and he topic is deindustrialization. Picking up our electric 1970 but we will take this all the way through the 1980s. Developments that i talk about erent sudden, they unfolded very slowly. And i will explain why. To do that i want you to reflect to question that im going give you. Handsse your lands yet because i want you to think about. The American Dream. How do you define that . Then i want you to think about grandparents generation, your parents generation, and generation. Want you to think about the standard of living enjoyed by your generations and family. Can somebody give me a definition of the American Dream . Carla carla. , like, successful and getting married and having kids to provide for your family. Yes, that is the american a lot of people. How how else do people think of the American Dream . For an immigrant family my were both immigrants and my us they value education, getting educated and finding a job so i can take care myself. Right. Prosperous, successful, education. We might thing that not think about is how the merican dream is imagined to unfold over generations. My grandparents being immigrants they came to the United States because they wanted to create children alongfor with there is the assumption dream relies can on equality in the United States. That everyone in this country lives here has access to the American Dream. Now reflecting on your grand participants and parents, how to that respond question . Ith a she of hands how many with a show of hands how many peoples parents lived in your a pwbetter life than your grandparents generation. Interesting. How many of you think that you a standard of ve living better than your parents . Ok. Really begs the question what is standard of living. I get it. We are going that, to move on to talk about what happened to the u. S. Economy. Sort of a development in u. S. Political economy after the 1960s. It is a period that we refer to d deindustrialization. Jobs started t moving. American capital started moving places where it had been established over the course the 20th century. To help us understand that, can was it tell me what about the United States between 1970 that made prosper . What happened . What fueled this American Dream that help your parents generation to live better than your generation . Laws that are enabling people to go to college and get educated and try to get to that area of in able to be prosperous and successful. Thatght, the g. I. Bill created Educational Opportunities for the American Military. What else . Can you wait a second . Go ahead. Following world war ii and all those things that happened to rebuild the American Dream and the economy, help people be a lot more helpful. The new deal also created the welfare stage, we had social security. At this point, after world war ii, america has the economic ability to be able to support people because most of europe is destroyed at this point and the American Military was growing with a lot of resources based on what they are selling to the world. Right. Remember, they became to the world. Our Financial System was so robust that we are lending a great deal of money to these nations in europe that are recovering from the destruction of the war. We are also becoming a manufacturing powerhouse. This was when we saw the development of u. S. Aerospace, of the automobile industry. We became very prosperous because of heavy industry, essentially. So, this is what is going to change once we get to 1970. Because american manufacturers decide that, in order to maximize profits, they need to leave the places where they had built their plants. Detroit, like pittsburgh. Gary, indiana. This place, i have told you about this place before. Camden, new jersey, where i was born. This is when my father was growing up there. It was doing very well. It was an interesting workingclass state. You werent rich, you typically lived in two flats and three flats, and you worked in the shipyard or you worked at rca. If you are my grandmother, you were waitressing. By 1980. Amden when i was growing up in the suburbs outside of the city. Trains to get into philadelphia and we would have to cross over camden. Nobody would get off the train in camden if you were from the outer suburb, you would just go over camden and this is what you would see out the window. After thelike dresden war and continues to look that way today. Its because companies that were so important to the economy in the 1950s, in this case, records, they rca took their plants out of camden and moved to the American South and southwest. An area of the country. Is in aine that we see place that we call the rust belt, this section of the United States which tends to be in the northeast into the midwest. Butago is in the rust belt it has not suffered like other cities. Does anybody know why . What is it about chicago that has helped keep the city alive . Chicago has a very diverse economy. Even though manufacturing was very important and there is still some manufacturing here, some of those industries that we talked about, from the beginning of the 20th century, the stockyards, these Centers Closed manufacturing, but chicago has always had many other things going on here. Belthe jobs leave the rust and the first place that they go in the 1970s is to the sunbelt. The sunbelt is a region of the United States, it is really a Political Economic idea. The idea that metropolitan centers like dallas, houston, charlotte, north carolina. They become the places were manufacturing finds a home. So, why . Why would businesses leave the rust belt as it became known, and go to the sunbelt . Because of economic incentives. Week, excuse me, i believe it was tuesday, we talked about senator Barry Goldwater of phoenix. Barry goldwater, i pointed out, was one of the fathers of u. S. Conservatism from the 1950s and 1980s. Became soy goldwater successful in phoenix, not just familysf his Department Store business, which he inherited from his father, but because he and other city leaders in phoenix changed the laws to make phoenix businessfriendly. Phoenix in the 1950s went from being a backwater southwestern town to being an economic engine for the nation. And into the sprawling metropolitan center that you know today. For a few reasons. The first was tax incentives. Business inpen a chicago,east, even in you are going to pay a lot of taxes. People in the city will tell you that they pay out the nose. Phoenix, the city fathers established a system so that they could lure manufacturers to their part of the country by saying if you come here, we wont charge you taxes for the first five years of your existence, or we are going to bring down those taxes to make it affordable for you to operate your business. Example, in my neighborhood, in the north part of chicago, there was a Storage Space that is going to open shortly. But when the Business Owner proposed it for zoning, a lot of people didnt want Public Storage in the middle of our neighborhood. Its not going to look pretty. But there are others who tought, well, what is going happen when what was formally a parking lot is now a business . We are going to collect taxes from that business and it will help our schools. Cps is always struggling. Thats the reason for taxes. In the sun belt, politicians were saying, well, we cant do that. If we want to have jobs here, we have to make it easier. So the other thing they did, they eased regulations. They made it easier for businesses to deal with zoning laws and all the other things that they have to do in order to operate their businesses. So, they pulled back on government regulations. The last thing they did, they made it hard for unions to organize. They passed what are referred to as not right to work laws but laws that basically make it hard for the government to intervene in labor disputes. So, these are laws that favor employers. Businesses like and moved to the sunbelt. To this day, the economy and that part of the United States is growing in ways that its not in this part of the country. Example, ie you an want you to imagine what weve talked about up to this point, how we saw in employment, especially manufacturing employment, where does this spike come from . The war, right. Then, we had a little bit of a recession but then the economy to the middle of the 1970s and then you see the decline. This is also interesting in terms of the racial disparity. Incline of wealth enjoyed by different groups of americans, so there is an increase until the 1970s. Africanamerican wages and wealth does not ever really with white americans. And then when they Start Recording the wealth of hispanics, you can see the decline. So, im just going to throw some statistics at you. In 1947 we produced most of the worlds steel. If you remember when we talk about the industrial revolution, how important the development of steel was to the u. S. Economy. Producing are on the 16 of the worlds steel. Becoming thefrom most important exporter of becoming, over time, one of the most important importers of goods. So, the other reason we see a decline in this period is because of the Labor Movement losing a lot of its power. Im going to read you some quotes here from people who lived through this. So, the american Labor Movement, if you remember, generated a great deal of energy, especially during the war and during the great depression, that was after its initial rise at the beginning of the 20th century. After the 1960s, unions start to go into steep decline in the United States. Because there are many people who dont like unions. Partly because of internal inertia. I pointed out that people who worked in manufacturing because lcio went from being members of the working class to being members of the middle class. If you worked for gm and raise your family in michigan, chances are you had good health care, you had a pension, and you are going to be able to send your kids to college. Of that, Union Members did not want to rock the vote and neither did there leaders. Neither did their leaders. They were not going out and having oneonones and trying to bring in people. They went into decline. Another reason, some unions were plagued with corruption and some unions had ties to the mob. These gave all unions a bad reputation. Theher reason is that government and politicians began doing what they could to make it harder for unions to organize. For example, the government in a particular state would not enforce the laws of the National Labor relations act. Do all kinds of things to make it hard. If you walked into work and you had a union button on, the law says that you cant fire someone for wearing a union button. But if the law is not being enforced, its going to be really hard to organize the union in a place like walmart, for example. Inertia,endly laws, and a Political Climate that is unfriendly to unions. And kind of the rise of the sun policies that made it harder for businesses to meet the demands of unions. That is one reason. Problem withs a the wages, the benefits, the pensions that happen after 1970. Ill give you an example. 25 of American Workers are organized in 1976. In eight years, its down to 15 , and it has only dropped off from there. Recently, we are seeing something of an uptick in organizing in places like universities, for example. Heardow how many of you the report on organizing here at loyola and other universities yesterday. There are sectors of the economy were you do see labor asserting itself but for the most part, it doesnt have the National Impact that it had politically or economically in the 1960s and earlier. An example. E you this is the mcdonalddouglas plant in california. Mcdonnelldouglas is one of those classic businesses that grew up out of the war. There are off in los angeles with world war ii. Mcdonnelldouglas was one of those companies that employ tens of thousands of employees who lived for the good lifestyles pretty good lifestyles in the 1950s, even into the 1970s. It is the kind of employer that is still like this. If you remember when we talked about home loans at the time, this is california. It was one of many subdivisions that sprung up in response to the economic boom that we talked about and also the passage of the national highway act in the early 1950s. Well get there in a minute. About whated to talk happened. There is no more mcdonnelldouglas anymore. Over the course of the past antsle decades, their pl closed and that you eventually which ofth boeing course is the most important manufacture of airplanes area which oncelldouglas had built the transport vehicles for the United States and other allied nations in world war ii disappears. So, they closed a plant in torrance and other places. And people just lost their jobs. Difficultecame very for people who were doing heavy like welding and riveting, people who work machinists. They suffered terribly because of that. 1973, a spokesperson for the actually came before the u. S. Finance committee to talk about what was happening to our economy and i will quote him here. He says we have become a nation a countryer stands, of industrial capacity and meaningful work, stripped of these things. We are a Service Economy, a nation buying and selling root beer floats. This is what happens. We go from being an industrial economy to a Service Economy. Mean . At does that the the problem whats problem . One economy replaces another. What is wrong with flipping hamburgers at mcdonalds for making or making lattes at starbucks . Why dont people aspire to that . Im going to call on your. Im going to call on you. U. S. Was abefore the country that was making advancements in the world and universally and if you are just a Service Economy it is just monday and, you are not making it is just mundane and you are not making any advancements. There are some that would be less for filling but there were also, if you remember, that Charlie Chaplin film that we watched, work in the industrial sector could be unfulfilling, too. But theres something different, even when the jobs were monotonous. The wages are not the same. What else . I think it is just the connotation or the image of working, making lattes or flipping hamburgers. You are serving people. Before you were behind the scenes making projects and you make more money off of that, by making those products in a factory, its kind of an advancement. You are in for a Bigger Company versus when you flip hamburgers, it is kind of like, small. The question is, why . Why is that not the same . Like a global industry, when you are producing, you are serving the whole expansive population of people whereas service in the United States, you are not really involved anywhere else. One more, victoria . In the industrial economy its much easier to upkeep in middleclass as you said with those benefits. Be in they can you middle class if you work in gm and you are just putting bolts on . The wage is better and you get a pension. Pension everybody gets social security, but it is really the benefits. Are working in the Service Economy, chances are you are not making much for retirement, your employer is not putting much money away to help you save for when you cant work anymore. Second is health care. In the United States, most care is tied to their employment. If you have what is usually a parttime job in the service industry, you are not going to have the same Health Care Benefits that your parents and your grandparents had. Reasons why wee fight so much about Health Care Policy in the United States. Trying toear Congress Figure out what they are going to do with obama care. It is why these have become such hot button issues. This is when it became a problem. When we started to deindustrialize. See aser thing that we we move into the 1980s is that from thes that moved rust belt to the sun belt, they leave the country altogether. So, it becomes much more tofitable for manufacturers make goods in places like any place where they dont have to pay the same kind of wages that they do in the United States. Iphone . Do you know where its made . China. Why dont they make it here . Would be paying 10 times as much for that phone, probably, if they had to pay u. S. Wages, if they had to provide benefits, if they had to provide actions and maintain a standard of living for people who work in heavy industry in the u. S. So, jobs moved offshore. Thats what we call it. Off shoring of the industrial economy. Then we get hit even harder. Of the 80s and 90s, we see manufacturing on the u. S. Border and businesses called maquiladoras. Texas,r places close to you have workers who are making goods that are just going to go right across the border into the United States. On the one hand, this is helpful because people can afford these manufactured goods. People a reason why most at loyola and other places actually own iphones. Thats why its universal, its a technology that people adopt because it is cheap. The problem is that its not helping people earn livable wages in that area. So, when we get into the next class, we are going t