For more resources, go to

UNIT 9 TOPIC 4

A Changing Economy H E I M L E R S H I S T O R Y. C O M

THEME : Work, Exchange, and Technology

LEARNING OBJECTIVE : Explain the causes and effects of economic and technological change over time.

HOW DIGITAL TECHNOLOGY CHANGED THE ECONOMY

By the time the clock ticked over to the 21st century, America was firmly settled into the
demands of the revolution. And here we need to start with the advent of the
. This device had its origins in the United States in , and back then a computer
basically required a whole new to be built—they were massive.

But over the course of the 20th century, a series of technological innovations like and then
steadily the size of the computer. By 1977 the computer
was so in comparison to its ancient, mid-century relatives, that created a
computer for use in the . IBM followed suit in the 80s with the production of and
by the time the decade came to an end, were in nearly every workplace.

In the 90s, the widespread use of the changed everything yet again. The internet was
originally conceived of as a series of computer pages that could be accessed all over the
world by dialing in to the .

SUMMARIZE the notes above in your own words. (2-4 sentences)

© Heimler’s History Please do not share or post online.

*Advanced Placement® and AP® are trademarks registered and/or owned by the College Board, which was not involved in the production of, and does not endorse, this product. page 1 of 5
 For more resources, go to
UNIT 9 TOPIC 4

A Changing Economy H E I M L E R S H I S T O R Y. C O M

THEME : Work, Exchange, and Technology

LEARNING OBJECTIVE : Explain the causes and effects of economic and technological change over time.

EFFECTS OF THE DIGITAL REVOLUTION

Computers and the internet dramatically many aspects of American life, especially with
respect to the and the .

became the digital replacement for letter writing and handwritten memos.
programs like Napster, which allowed people everywhere to share digital files, quickly became
ubiquitous and it forced the industry to completely the way it did business.

Additionally, the internet had a major impact on the and industries

who struggled to their content for the new age. Additionally, thanks to sites like
Americans could now purchase goods and have them
to their door, which had the effect of driving many stores out
of business.

The impact of all of this on the has been a subject of debate. On one hand the digital
revolution led to an increase of starting in 1995, which is a good indicator of the
overall of the economy. This increase was primarily attributed to the with
which across the globe could be handled in the internet age. On the other hand, this
increased productivity has not led to a dramatic increase in that economists would
have expected. One of the major reasons for this is the changing nature of in the digital age and a
growing .

© Heimler’s History Please do not share or post online.

*Advanced Placement® and AP® are trademarks registered and/or owned by the College Board, which was not involved in the production of, and does not endorse, this product. page 2 of 5
 For more resources, go to
UNIT 9 TOPIC 4

A Changing Economy H E I M L E R S H I S T O R Y. C O M

THEME : Work, Exchange, and Technology

LEARNING OBJECTIVE : Explain the causes and effects of economic and technological change over time.

SUMMARIZE the notes from the previous page in your own words. (2-4 sentences)

MANUFACTURING JOBS DECREASE, SERVICE SECTOR INCREASES

In the late 20th century and early 21st century, in America has
sharply while the sector has sharply. Since the 1980s there has been
a steady decrease in American manufacturing as that task has increasingly been overseas,
especially .

Because of agreements like the General Agreement of Trade and Tariffs signed in 1994,
it has become far easier to manufacturing to countries who will do the work for much
than their American counterparts. One major result of this transfer of manufacturing work out
of America is the of American . In 1954 there were
workers in labor unions than at any other time, and in that year % of all workers were involved in a
union. Today, it’s a little more than %.

A major blow to unions occurred in 1981 when president worked to get striking air
traffic controllers fired. This action essentially their union, and this is consistent with Reagan’s
policies. Remember, he was a economics guy which means in
this case he was standing up for the supply side, which is to say, the , over against the
side, which is to say the airline workers.

© Heimler’s History Please do not share or post online.

*Advanced Placement® and AP® are trademarks registered and/or owned by the College Board, which was not involved in the production of, and does not endorse, this product. page 3 of 5
 For more resources, go to
UNIT 9 TOPIC 4

A Changing Economy H E I M L E R S H I S T O R Y. C O M

THEME : Work, Exchange, and Technology

LEARNING OBJECTIVE : Explain the causes and effects of economic and technological change over time.

MANUFACTURING JOBS DECREASE, SERVICE SECTOR INCREASES cont’d.

As the manufacturing sector was in , the service sector was to take

its place. The manufacturing sector stuff. The service sector provides
products like , services, operations, etc.

As of today, about % of American jobs are in the service sector.

All of these changes have had a tangible effect on the increasing between the
and the middle class. Over the course of this period wages have essentially
for the working class. Between 1979 and 2007 the top-earning 1% of American households have seen their wealth
grow by % while the middle 60% of earners have seen their incomes rise by %. Partly
this has to do with the of high-paying manufacturing jobs and the rise of low-wage
jobs. And partly it has to do with the restructuring of the begun
under Ronald Reagan which has the earners in the top 1%.

SUMMARIZE the notes above in your own words. (2-4 sentences)

© Heimler’s History Please do not share or post online.

*Advanced Placement® and AP® are trademarks registered and/or owned by the College Board, which was not involved in the production of, and does not endorse, this product. page 4 of 5
 For more resources, go to
UNIT 9 TOPIC 4

A Changing Economy H E I M L E R S H I S T O R Y. C O M

THEME : Work, Exchange, and Technology

LEARNING OBJECTIVE : Explain the causes and effects of economic and technological change over time.

RESPOND to the learning objective with an evidence-based, argumentative thesis.

LEARNING OBJECTIVE : Explain the causes and effects of economic and technological change over time.

© Heimler’s History Please do not share or post online.

*Advanced Placement® and AP® are trademarks registered and/or owned by the College Board, which was not involved in the production of, and does not endorse, this product. page 5 of 5