Period 9  1980-Present

Topic 9.4  A Changing Economy

AP Learning Objective D: Explain the causes and effects of economic and technological change over time.

1. Economic Productivity
a. After decades of limited growth in productivity in the 70s and early 80s, the late 1980s and 1990s saw a substantial increase in
productivity, particularly when the digital revolution made it possible for an explosion in internet-based opportunities.
b. Apple Computers and Microsoft helped produce a computer revolution with personal computers and user-friendly software and
interfaces. Many American corporations stripped down their workforce, outsourced manufacturing jobs overseas or automated
heavily, and shifted to a service industry approach with their remaining American workers, often leading to increased profits.
c. Email and the internet accelerated globalization, integrating American companies even further into the global economy, and
opening up opportunities for increased profits.
d. During President Clinton's two terms the United States enjoyed the longest peacetime economic expansion in its history, with
annual growth rates of more than 4 percent. Technological innovations in personal computers, software, the Internet, cable, and
wireless communications fueled this increased national productivity (a gain of more than 5 percent in 1999) and made "e- (or
electronic) commerce" part of American life.
2. Technological Innovations
a. The rise of the affordable PC (personal computer) in the 80s and 90s radically changed not just the business community, but
domestic and cultural arenas as well.
b. Amazon, eBay, and PayPal all changed the way consumers shopped (and paid). Social media radically changed the nature of
advertising.
c. Consumer culture increasingly shifted to an instant gratification basis, both in terms of content (Americans could download books
and movies without waiting) and in terms of expectations. Dating, for example, became digitalized.
d. Cell phones (and later smart phones) had an immense impact on how Americans lived their lives. Facebook and other social media
programs radically changed the nature of friendship.
3. Key Takeaways
a. Economic productivity increased as improvements in digital communications enabled increased American participation in worldwide
economic opportunities.
b. Technological innovations in computing, digital mobile technology, and the internet transformed daily life, increased access to
information, and led to new social behaviors and networks.
c. Employment increased in service sectors and decreased in manufacturing, and union membership declined.
d. Real wages stagnated for the working and middle class amid growing economic inequality.

Key Vocabulary [highlighted throughout PowerPoint and Lecture]

Pink: fundamentally important
[1] Economic Productivity
globalization
computer revolution
technological innovations
Green: Very important Yellow: Somewhat important (“nice to
know”)
[2] Technological Innovations [3] Employment & Wealth
PC (personal computer) ---
shifting consumer culture