Always a junior partner in the Democratic coalition, the labor movement found itself forced onto the defensive. It has remained there ever since. One example of the weakening of unions’ power came in 1975 with the New York City fiscal crisis. Deeply in debt and unable to market its bonds, the city faced the prospect of bankruptcy. The solution to the crisis required a reduction of the city’s workforce, severe cuts in the budgets of schools, parks, and the subway system, and an end to the century-old policy of free tuition at the City University. Even in this center of unionism, working-class New Yorkers had no choice but to absorb job losses and a drastic decline in public services.

The weakening of unions and the continuation of the economy’s long-term shift from manufacturing to service employment had an adverse impact on ordinary Americans. Between 1953 and 1973, median family income had doubled. But beginning in 1973, real wages essentially did not rise for twenty years. The 1970s was one of only two decades in the twentieth century (the other being the 1930s) that ended with Americans on average poorer than when it began. The popular song “The River,” by Bruce Springsteen, captured the woes of blue-collar workers: “Is a dream a lie if it don’t come true / Or is it something worse?”

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