Deregulation And Deindustrialization Essay

In the U.S economy, there were two causes of the shifting employment pattern. The first one is deregulation and the second one is deindustrialization. “Most analyses point to two major structural developments in the U.S. Economy as the main cause of shifting employment pattern in the late twentieth century: deregulation and deindustrialization”(Chomsky 4). The meaning of deregulation is to “remove government regulatory controls from an industry, commodity, and etc.” (dictionary.reference.com) and deindustrialization means to “cause to lose industrial capability or strength; make less industrial in character or emphasis” (dictionary.reference.com). Chomsky states that “Not only did jobs disappear in this period, but the nature of jobs in this country underwent a shift” (4) means in the period of shifting

Many businesses hire low skilled workers for low wage, but many Americans are not willing to work for low wage. Moreover, many businesses want to keep their costs in a very low price, to achieve the high profit margin. They get their employees from other countries and moving production over the world. Many workers in the United States come from halfway across the world. Low-paid workers are used to produce and export raw material. Companies use cheap raw materials to produce products and invest to other countries with high profits. “People in the south still produced items for export to north--but now they export manufactured food as well as raw materials” (Chomsky 5). The New England was the first one to try out with new business in the U.S. southeast in the beginning of 21th century to find lower cost. “The New England textile industry was one of the first to experiment with plant relocation, shifting its production to the U.S southeast starting at the very beginning of twentieth century in search of lower costs” (Chomsky 5). The relocation program was very successful by the end of the