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Quinnetta Williams
Public Sector Employment Issues
March 2, 2015
Midterm
Before the 1970s, there was a period of economic prosperity, growth and development.
The baby boomers soared and there was an immense amount of GDP circulating throughout the
United States. Unfortunately, the United States encountered a period of economic turmoil,
politically, economically and socially which forced government and unions to intervene. As
stated by Joseph A. McCartin in, “A Wagner Act for Public Employees”: Labor’s Deferred
Dream and the Rise of Conservatism, 1970-76 public sector unions grew tenfold between 1955
and 1975, topping four million by the early 1970s.1
Regarding the public sector, constituents
fought for higher wages. They also attempted to get the most out of the dollar bill as gold was no
longer being backed for each dollar earned. The 1970s was characterized by international
competition, unemployment, inflation and rise in energy prices.2
This paper will attempt to
clarify the economic, political and social concerns of the 1970s to better understand the turning
points. Following this, I will determine what constituted the demographic changes in the 1970s
and what stirred the women’s movement and inclusion of minority workers. I will argue that the
turning point of the 1970s was marked by strong national labor relations efforts consisting of
federal workers, the Arab Oil Embargo and the Nixon Presidency regarding Watergate.
Considerable research has shown that there was a rise of public sector labor relations in
the United States during the decade of the 1970s. Debate and dilemma consisted around the idea
that unions could not compete with government intervention. Organized labor fought long and
hard between 1970 and 1976 for implementation of a law that would extend collective
bargaining rights to state and local government workers. Workers dealt with a dwindling
economy with inflation, high unemployment rates and slow economic growth.1
Workers went

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into some form of depression because they could not recover from the economic downturn that
persisted throughout the 1970s. During this time the United States gross domestic product started
to decline. This movement was a political transition because it influenced the Democratic Party
alliance where the New Deal was able to prosper.1
Meanwhile Nixon said, “I am now a
Keynsian” and it in the midst of it all there was much debate between union and conservatives on
who was the blame for high taxes, government issues. Due to this issue this became a dilemma
for workers during the 1970s. Moreover, union members began to increase their power with
labor militancy. This was also due to the fact that there was a financial crisis brewing and
workers felt that needed to be secure. According to McCartin, gross domestic product declined
by 1.3 percent while unemployment rose to 8.5 percent. The 1970s postal and teacher strike was
also a main reason why the economy was in the state that it was in. Many went on strike for
better communication and higher wages on the job. As a result, a trickledown effect in that
governments were reluctant to spend and invest in businesses.1
Declining national debt
encouraged the depletion of government spending.1
As a result workers experienced wage
freezes and reductions which forced them to go on strike. This was clearly a turning point of the
1970s because many workers lost their jobs and the government was at a standstill in terms of
what they could do. This also marked the increase in public sector strikes during the year 1975
and nearly 478 walkouts from multiple jobs. AFSCME started as a reform organization and
focused on organizing powerful unions. Under this Wagner Act, many asked for industrial
workers to be organized and blue collar representation.1
The economy was in state of
“stagflation” because there was low economic growth combined with high unemployment rates.2
Furthermore, the United States started to enter a recession. The Arab Embargo Oil of
1973 created much tension within the public sector in the United States. During this time the

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Arabs were fighting with Israelis. There was an energy shortage because of a worldwide
shortage.3
The western parts of the world intervened in the fight and aided Israel to their victory.
This was the reason why the Arab Embargo happened to begin with because the Arabs were
angry at other countries. As a result, they eliminated oil from parts of the world. The United
States tried to negotiate with the Arabs for oil which created political debate.3
This was an issue
that existed in political discussion because the United States would mess up with their relations if
Arabs refused to give them oil. The nation focused on conserving their oil reserves for the future.
As a result the gas prices rose. This coupled with stagflation created the recession. In addition,
there was a high demand on jobs, housing and material items that was hard for workers to get
their hands on. The main issue of the 1970s was the fact that no one wanted to take the chairman
position in the Federal Reserves to lessen the wage halt and lower inflation. Simultaneously,
investors and creditors had no faith in the banks so they were reluctant to capitalize. Prior to the
1970s, there were no influential policy makers that put a stop to inflation. The recession also
caused many hardships. High unemployment was a condition of the recession and was caused by
the women work force.
During this time, there was increased pressure for social reform including the Civil
Rights Movement, women’s liberation and environmental changes. The United States continued
to face demographic changes that would lead to immigration laws, and inclusion of minorities. In
the midst of it all, women campaigned through the National Organization for Women and the
National Women’s Political Caucus and the Equal Rights Amendment. This amendment stated
that equal rights under the law should not be denied or abridged by the United States or any state
on account of sex.5
While women moved into nontraditional jobs and participated in job training
programs, there were disparities between men and women. The wage gap also brought about

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much debate during the 1970s on pay equity. Women were thought to only go up so high in the
labor market to the point where they would reach something called a “glass ceiling”.5
There was
an occurrence of gender stereotyping many “gender neutral jobs”. Even though some of the Jim
Crow laws were combating during civil rights legislation and court decisions, there was still
inequality that existed that weren’t dealt with by way of the law. The Supreme Court did not
want to integrate. There were desegregation efforts in the public education system that consisted
in all minority inner city schools. In 1974, the Supreme Court ruled that integration was
unconstitutional which forced affirmative action. The 1970s in itself was a period of drastic
change. Laws, politics, international affairs and even presidency were issues that created strong
labor movement and pressured social reform. Within this small decade people did whatever they
could to get back on their feet in hopes of combating the turmoil that existed. Affirmative Action
programs where employers made efforts to hire and promote minority workers was one way to
combat the ruling of the Supreme Court. Some felt that affirmative action was reverse
discrimination against the dominant group including white males.5
In terms of immigration, the
Mexican Americans were able to make some advancements during this time by creating the
Mexican American United Farm Workers where they were able to collectively bargain with
elected representatives within the union. In addition, The Native Americans occupied Wounded
Knee which was the last confrontation between Sioux and Army.5
President Nixon rejected
“termination in favor of supporting tribal autonomy. Furthermore, the Indian Self Determination
Act of 1974 gave the tribes control over federal aid programs that they were able to benefit from.
During 1974, Nixon’s presidency lost its credibility due to the Watergate Scandal. Nixon
became anxious about his running mate so he decided to send “creepers” to find out information
at the White House. The creepers broke into the White House in hopes of attaining information

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about the election and presidential campaign. The second time around they were caught by
security and arrested. Many of Nixon’s daily journals and files were used against him in the
court of law where he was charged with crimes and felonies.3
This led to Nixon’s resignation and
many questioned his leadership ability. Due to this incident many economical changes arose. The
postal and railroad workers went on strike because of their wages which weren’t enough to
combat inflation. There was debate on who would regulate the economy. This coupled with the
Embargo Act of the 1970s created the turning point in the United States.
From this analysis, it is evident that the Watergate Scandal, the Embargo Act and issues
regarding immigration, women’s rights and public sector labor relations constituted the turning
points of the 1970s. What would have happened f the Watergate Scandal never happened?
Would the United States be in such a crisis? Once we begin to understand the turning points and
what led up to the turning points we will have a better understanding of why the nation is in the
position it is in now and where it might be headed.

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Bibliography
1."America in the 1970s." Accessed March 2, 2015. http://www.cliffnotes.com/more-
subjects/history/us-history.
2. McCartin, Joseph. "A Wagner Act for Public Employees: Labor's Deferred Dream and
the Rise of Conservatism, 1970-1976." The Journal of American History, 2008, 123.
3."That 70s Crisis." Dollars and Sense: Real World Economic. January 1, 2009. Accessed
March 2, 2015.
4."US History." U.S History: Economics of the 1970s. Accessed March 2, 2015
5."US History." U.S History: Politics of the 1970s. Accessed March 2, 2015.