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Technological advances from the printing press to the railroad have had huge impacts, often beneficial, to society. From the spread of ideas to the advent of supply chains capable of shipping,transporting and communicating over thousands of miles, technology has revolutionized the lifestyle of ordinary people. However, technology often has unintended consequences; for instance the recent Arab Spring uprisings throughout the Middle East was an unintentional consequence of social media. Over the last 50 years, technology has led an economic transformation in America. "In this transformation... The shift began when technologies developed by government to fight the Cold War were incorporated into new products and services. This created possibilities for new competitors, beginning in transportation, communications, manufacturing and finance" (Reich, 7).
Technology in the last 40 years has significantly affected our daily lives, however, one of the unintended consequences of these advances is the drastic widening of the income gap due to global competitiveness and the segregation of society. Although the Gross Domestic Product of the US is still growing, albeit at a much smaller rate, the harmful effects of wage reduction and joblessness have been particularly harmful of society as a whole. The income gap has caused three major detriments to the American way of life: globalization, social stratification and a lack of economic stability.
The advances of shipping and communication across miles and borders caused a revolution in the global market. As new markets are accessed throughout the world, corporations and companies benefitted through access to both the cheapest labor and global supply networks. With advances in both shipping and communication equipment, companies can take advantage of cheaper labor through outsourcing. Many factories in the US have outsourced, or moved factories overseas, to take advantage of lower wages in other parts of the world. "Whirlpool plans to close the plant on Friday and move the operation to Mexico, eliminating 1,100 jobs here" (Greenhouse, 1). Due to an increase in pressure from foreign competitors and rival corporations, companies are forced to move US jobs overseas in order to cut costs and remain competitive. Greenhouse goes on to write regarding Whirlpool's actions, "It continues a trend in which the nation has lost nearly six million factory jobs over the past dozen years, representing one in three manufacturing jobs" (Greenhouse 1).
The constant stream of factory jobs leaving the US has caused chronic unemployment and represents the loss of stable, middle class jobs. The progression of outsourcing has also caused the proliferation of global supply chains. "American firms were doing fine. They had just become more global. They used the new transportation and communication technologies to set up factories abroad or to contract with foreign suppliers for the components they needed" (Reich 61). This process allowed once-monolithic and sedentary corporations the ability to break apart their operations around the world to utilize the cheapest labor and services. However, outsourcing and the expansion of global supply chains left behind a wake of deserted towns and disintegrating communities as manufacturing plants, once the backbone of these communities, moves away.
Although the process of outsourcing and remaining globally competitive is a loss for equality and middle class wages, it does provide for the cheapest goods making it a benefit to both consumers and investors. Additionally, this outpouring of investment and infrastructure does benefit the recipient country of corporate relocations. "Productivity in many low income areas of the world has been improved due to the ease of which state of the art factories and equipment can be installed there" (rich getting rich). Even though outsourcing provides for the best deals on products, this does not outweigh the "citizen" part of our mind. The loss of middle class manufacturing jobs in the United States puts many Americans at risk economically; being laid off or a tragic accident can be all it takes to put a family into bankruptcy.
Technology in the last 40 years has significantly affected our daily lives, however, one of the unintended consequences of these advances is the drastic widening of the income gap due to global competitiveness and the segregation of society. Although the Gross Domestic Product of the US is still growing, albeit at a much smaller rate, the harmful effects of wage reduction and joblessness have been particularly harmful of society as a whole. The income gap has caused three major detriments to the American way of life: globalization, social stratification and a lack of economic stability.
The advances of shipping and communication across miles and borders caused a revolution in the global market. As new markets are accessed throughout the world, corporations and companies benefitted through access to both the cheapest labor and global supply networks. With advances in both shipping and communication equipment, companies can take advantage of cheaper labor through outsourcing. Many factories in the US have outsourced, or moved factories overseas, to take advantage of lower wages in other parts of the world. "Whirlpool plans to close the plant on Friday and move the operation to Mexico, eliminating 1,100 jobs here" (Greenhouse, 1). Due to an increase in pressure from foreign competitors and rival corporations, companies are forced to move US jobs overseas in order to cut costs and remain competitive. Greenhouse goes on to write regarding Whirlpool's actions, "It continues a trend in which the nation has lost nearly six million factory jobs over the past dozen years, representing one in three manufacturing jobs" (Greenhouse 1).
The constant stream of factory jobs leaving the US has caused chronic unemployment and represents the loss of stable, middle class jobs. The progression of outsourcing has also caused the proliferation of global supply chains. "American firms were doing fine. They had just become more global. They used the new transportation and communication technologies to set up factories abroad or to contract with foreign suppliers for the components they needed" (Reich 61). This process allowed once-monolithic and sedentary corporations the ability to break apart their operations around the world to utilize the cheapest labor and services. However, outsourcing and the expansion of global supply chains left behind a wake of deserted towns and disintegrating communities as manufacturing plants, once the backbone of these communities, moves away.
Although the process of outsourcing and remaining globally competitive is a loss for equality and middle class wages, it does provide for the cheapest goods making it a benefit to both consumers and investors. Additionally, this outpouring of investment and infrastructure does benefit the recipient country of corporate relocations. "Productivity in many low income areas of the world has been improved due to the ease of which state of the art factories and equipment can be installed there" (rich getting rich). Even though outsourcing provides for the best deals on products, this does not outweigh the "citizen" part of our mind. The loss of middle class manufacturing jobs in the United States puts many Americans at risk economically; being laid off or a tragic accident can be all it takes to put a family into bankruptcy.
