Economic and Demographic Upheavals in Society and Family Formation
Globalization and Structural Transformation
• Forces Transforming the U.S.
• New technologies based on microelectronics
• Globalization of the economy
• Change from manufacturing to knowledge-based corporations – U.S. corporations continue to move in
the direction of the production of knowledge
• Capital flight – the movement of corporate monies from one investment to another, which takes on
multiple forms:
a) Overseas investment by U.S. firms
b) Relocation of businesses
c) Mergers and takeovers
From Manufacturing to Services
• Changing nature of jobs as U.S. shifts to economy based on ideas rather than physical capital
• Moving manufacturing jobs to low wage economies results in unemployment & low wages for those still
employed
• Outsourcing (offshore sourcing of information-based goods & services) threatens educated white-
collar workers as well
• Worldwide communications revolution created by the internet
• Qualified workers in English-speaking countries willing to work for 20% or less salary of comparable
U.S. worker
• Some sectors of the economy will expand (sunrise industries) while other sectors wane (sunset
industries)
The New Economy and Families
• Job Insecurity
• 9 million “officially “ unemployed, 4 million working part-time but want to be full-time, 1 million have
given up looking for work
• Minorities, women, working poor are least secure (lower incomes, greater chance of losing jobs
because of seniority & concentration in vulnerable industries)
• 30 million contingent workers in temporary, contracted, self-employed, leased, part-time,
“nonstandard” arrangements are also economically insecure
• Benefits Insecurity
•Reduction in benefits to workers
•Failure to provide benefits already promised to workers
•Workers required to contribute more for benefits
• Economic Inequality
• Among all advanced industrial societies, the U.S. has the greatest income inequality.
• Gap between wealthiest and poorest families is increasing.
• Median household income is declining.
• The Shrinking Middle Class
• The trend of mobility into the middle class after World War II peaked in 1973.
• Ownership of home & new car, college education for children becoming less attainable
• College education has been the main way to achieve upward mobility or least maintain middle class
stability
• Many families have slipped below the middle class, others have retained middle class status by 2
spouses working, multiple jobs, increased overtime, or increased debt
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