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3.1 Out of Crisis: Innovations in the 1980s and Beyond

Last time, we saw that the Social Contract served the economy and workforce well from the 1950s through at least part of the 1970s. Many people thought this was the new normal and that things would stay this way forever. But they didn’t. Below, let’s look at what business, labor, and government leaders missed. The 1980s were a critical decade in the history of work – it marks the period when the “social contact,” discussed in earlier videos, began to decline. In the video below, Professor Kochan examines the 1980s and explains its enduring relevance to the issues we face today.

Video: What Changed in the 1980s And Why Should We Care?

Attentiveness Question 1

What important factors happened in the 1980s? For this question, you can select multiple options:

Explanation

The video cites the importance of Ronald Reagan, global competition, and a recession, in driving social contract’s decline.

Exercise 1

 Ronald Reagan was elected president. 

 Global competition 

 A recession 

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Attentiveness Question 2

Why are today’s unions less powerful than they were during their best years?

Explanation

Worker strikes and pattern bargaining are no longer powerful tools; thus, unions cannot effectively use them today.

Exercise 2

 Strikes and pattern bargaining lost their influence 

 Unions refused to work with new, high-tech companies 

CheckShow Answer