Question

Difficulty: MediumThe Digital Revolution and Economic Globalization

"The expansion of global fiber-optic networks and the commercialization of the internet have done for service occupations what containerization and cheap shipping did for manufacturing in the mid-twentieth century. Historically, tasks such as data entry, customer service, and software engineering required close physical proximity to a company's headquarters or customer base. Today, these information-based services can be performed anywhere on the globe and transmitted instantaneously. Consequently, American firms have increasingly offshored both white-collar and blue-collar jobs, restructuring the domestic labor force and contributing to a growing economic divide between highly skilled tech professionals and service-sector workers."
—Adapted from a sociological study on the post-industrial economy, 2005

The economic shifts described in the excerpt most directly contributed to which of the following developments in the United States during the late twentieth and early twenty-first centuries?

  1. A
    The creation of Great Society programs that provided direct government employment for displaced manufacturing workers.
  2. B
    The implementation of federal demand-side policies that significantly increased spending on public works to protect domestic service jobs.
  3. The decline in the membership and bargaining power of traditional industrial labor unions.Answer
  4. D
    The primary shift of the labor force from agricultural self-sufficiency to localized factory work in New England.

Answer

The decline in the membership and bargaining power of traditional industrial labor unions.
The correct answer is correct because the shift from a manufacturing-based economy to a service- and information-based economy, accelerated by globalization and offshoring, undermined the strength and membership of traditional industrial unions.

Step-by-Step Solution

1
Analyze the stimulus to identify the central economic trend described.
The stimulus describes the transition of the United States economy toward a post-industrial, information-based service economy, facilitated by the digital revolution (fiber-optic networks and the internet) and global offshoring.
Understanding the core topic of the source is necessary to link it to broader historical trends.
2
Connect the described economic transition to its impact on the American domestic labor force.
The shift away from domestic manufacturing toward service-oriented and offshored information-based jobs disrupted traditional employment structures, leading to job losses in heavily unionized manufacturing sectors and growth in non-unionized service sectors.
This establishes the cause-and-effect relationship between economic globalization/digitalization and the domestic labor market.
3
Evaluate the options to identify which development directly aligns with these historical labor changes.
The decline in the manufacturing sector and the rise of a service-oriented economy directly contributed to the decline in membership and political bargaining power of traditional industrial labor unions.
This identifies the historically accurate consequence of Period 9 economic shifts.

Key Concept

The impact of the digital revolution and economic globalization on the American workforce and labor unions.
Estimated Time:1m 0s
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