1. Prepared By Prof Alvin So1 SOSC 188 Lecture 16 The Globalization Project (II): US Deindustrialization

2. Prepared By Prof Alvin So2 Causes of Deindustrialization The Debate on the Extent of Deindustrialization Problems of Deindustrialization How to Deal with Deindustrialization?

3. Prepared By Prof Alvin So3 Causes of Deindustrialization Why relocating industries? High wages and taxes, strong union in the core Cheap labor, low taxes and weak union U.S. products can’t compete with foreign goods Invest in the stock market and high-tech intensive industries

4. Prepared By Prof Alvin So4 The Debate on the Extent of Deindustrialization Don’t worry: No job lost, not deindustrialization, only short-term cycle Deindustrialization is real: Mismatch of job creation and job lost - from manufacture to service, from unionized jobs to non-unionized jobs from well-paid job to low-paid job from white male to minority female workers

5. Prepared By Prof Alvin So5 Problems of from Deindustrialization Shut-down blues for workers and communities Unemployment, divorces, and suicides Community decay, cut down services The changing shape of regions The fall of old industrial North And the rise of new industrial region in the South The rise of new ideologies and the Rights – Anti-Asian migrants Anti-Japan, Anti-China to protect American industries

6. Prepared By Prof Alvin So6 How to Deal with Deindustrialization? The proponents of globalization: Market will have self- correction, need no state action The critics of globalization: Since the state always intervenes for capital, it should do something for labor, e.g. restrict the extent of relocation lower taxes & give subsidizes to bring the jobs back workers had the right to know re-train workers to take up other job