During the late twentieth and early twenty-first centuries, the advent of the microchip, the internet, and fiber-optic cables facilitated a rapid transition toward a globalized, knowledge-based economy. This digital revolution allowed corporations to manage real-time supply chains, coordinate international production, and outsource manufacturing jobs to countries with lower labor costs, while centering high-value financial and technological services within the United States.
Which of the following was a direct social or political consequence of the economic developments described in the passage?
- The decline in membership of manufacturing labor unions and the stagnation of wages for blue-collar workersAnswer
- BA return to protectionist mercantilist trade policies to insulate domestic manufacturing from foreign competition
- CThe creation of large-scale federal employment programs modeled on Great Society and New Deal initiatives to absorb displaced workers
- DThe rapid narrowing of the national wealth gap due to the widespread implementation of supply-side economic reforms
Answer
The decline in membership of manufacturing labor unions and the stagnation of wages for blue-collar workers
The economic transition described in the passage reflects deindustrialization and the rise of a service-oriented economy. The outsourcing of manufacturing jobs reduced the demand for domestic industrial labor, leading directly to a sharp decline in the membership and political leverage of industrial labor unions. Concurrently, wages for blue-collar workers without advanced education stagnated as the economy increasingly rewarded specialized technological and financial skills.
Step-by-Step Solution
Key Concept
The economic and social impacts of the digital revolution and economic globalization, specifically deindustrialization, wage stagnation, and the decline of labor unions.