Work Exchange and Technology

Work, Exchange, and Technology Theme Statement The gradual movement from the US being in the industrial sector to the service sector is due to the rise of the internet, US financial power, and the new jobs these changes brought. Trends 1) Globalization As America became service and financially driven in world affairs, America become more reliant on other countries. 1) Change to the financial sector America became more economically fragile and service driven due to the decrease in manufacturing. 1) Rise of technology Developing technologies brought rapid growth to service and financial industries. Economics in the 1980s Recession 1981-82 Iran oil embargo led to increase interest banks to avoid inflation 10% unemployment Reagan Tax Cut Increase defense spending Boost the economy by allowing corporation to get more money Allowed growth of economy and brought out of recession National Debt Increase Tax cut, defense spending, etc. Rise of Apple in the 80s Founded by Steve Jobs and Steve Wozniak Started in a garage Built on research from the DoD Shrink technology/make it affordable 1984- 8.2% of households have a computer 2000- 51% of households have a computer Aided the growth of the internet Rise of Technology National Debt Tripled from 1981-1989 Increase in defense spending Huge tax cuts Social Programs Inbalance in the budget Reaganomics Change to the financial sector Internet gains popularity The largest network of networks in the world. More jobs to internet and changes economy more Original use - interconnect laboratories in government research December 1995 - December 1999, the rate of use went from 16 million to 248 million Geocities, Search engines, Animated Gifs, Realplayer, and AOL. Recession 1990-1991 Savings and Loan Crisis - greatest bank collapse Debt that corporations and individuals created in the 1980s Caused bankruptcies Fear Factor Black Monday NAFTA Ratified 1993 North American Free Trade Agreement - Got rid of tariffs and other things that decreased trade between the U.S., Canada, and Mexico. It was designed to give americans more jobs but actually made outsourcing easier for employers. Indirectly led to increased pollution and almost a depression in Mexico. Debt reduction under Bill clinton Higher tax rates on wealthy Cut military spending Growth of surpluses First four years of presidency - debt rose Next four years - debt fell Crisis in Newspaper Industry Decrease in newspaper sales and popularity New media outlets like television and internet providing the news Number of newspaper companies decreased The Great Recession of 2007-2010 Home mortgage crisis Housing bubble burst Securities backed by subprime mortgage → collapse Default on mortgages World stocks fall Stimulus packages passed in attempts to resolve the debt Bank Bailout (2008) $700 billion bailout of the financial services industry buy bad mortgage-related securities, which have slowed and, in some cases, dried up the flow of credit. Results committing American taxpayers to permanent, blind support of an ungovernable, unregulatable, hyperconcentrated new financial system that aggravate the greed and inequality that caused the crash Unemployment hits 10% Unemployment hit 10.2 percent, the highest rate since 1983 a sign of the continued weakness in the labor market The jump in the unemployment rate was driven up by a large drop in the number of people who describe themselves as self-employed, as well as the number of teenagers who have jobs There was a real mismatch between the unemployed people out there compared to what job openings are available, Financial Sector as % of GDP By 2014, the financial industry comprised 7.2% of the US GDP and employed 6 million people. Product of an increase in service jobs and decrease in manufacturing. The US is managing investments in and from nations around the world. In theory, a lot of economic growth could come from this. But economic downturns like in 2008 could become more likely, devastating, and global. Trends 1)Globalization As America became service and financially driven in world affairs, America become more reliant on other countries. 1)Change to the financial sector America became more economically fragile and service driven due to the decrease in manufacturing. 1)Rise of technology Developing technologies brought rapid growth to service and financial industries.