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Rise Of Globalization In America

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There was a time in America when people from all classes saw rising incomes from a growing economy. During the era known as The Great Prosperity, lasting from 1947-1977, the American economy grew extraordinarily due to an innovation in assembly line mass production that was first used by businessman Henry Ford. Henry Ford believed that his workers at the Ford Motor Company should be paid an income that enabled them to purchase the products that they made. Through this concept of Fordism, workers in the manufacturing sector of the economy were paid decent wages, and as the economy grew, middle class wages rose as well, and income inequality fell significantly. These higher wages induced increased consumption of goods and services, thus stimulating …show more content…

As countries’ economies became more interconnected, economies became more liberalized, and corporations aimed to further minimize production costs that would guarantee profit maximization. Because it was cheaper to have workers in China and Bangladesh assemble goods than workers in America, corporations began shipping manufacturing overseas, leaving workers in America laid-off and having to take low-skilled jobs that pay lower wages. As globalization was escalating, technology became more advanced, and therefore, more productive. Because capital equipment was now more profitable than labor, businesses began substituting more capital for labor. The demand for labor fell and so did their incomes. Private sector union membership was steadily declining. With the cost of living increasing as well, much of the middle class and working class were put in a bind to make ends meet. Working longer hours became more necessary to put food on the table. Many women, initially homemakers, began entering the workforce to provide for their families. The war against the middle class was

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