ABSTRACT
Following World War II, the United States dominated the global economy, accounting for three-fourths of the world's invested capital and two-thirds of its industrial capacity. This chapter examines how the changing global economy has impacted the political and economic life of a six-state region of the United States. With more new players in the global economy, the US rate of economic growth slowed. The debate between those who were optimistic about the opportunities associated with a changing global economy and those who saw the United States standing by idly while the nation's industrial strength was eroded had important implications for many governors and state legislatures that were facing serious economic problems. While the debate over deindustrialization was engaging politicians, policy analysts, and academics at the national level, most states were quietly, and with little fanfare, going about the business of coping with deindustrialization and the changing global economy.
