The real problem here predates Carter and Reagan and goes back to the New Deal itself. The New Deal was the carrot, along with the stick of the Red Scare, to root out communists and other radicals in the labor movement. The promise was that the government would protect, or at least tolerate unions, so long as they proved their loyalty by engaging in anticommunist witch hunts, such as when communists were kicked out of the AFL/CIO. The effect that this had on unions was that they became weakened, narrowly self-interested, and complacent.

Once the unions were broken, and the working class had no ability to wield power or fight back against whatever the government and ruling class decided to do, they could then take steps that would weaken them even further, and at the same time they could cut social programs, because nobody had any power to stop them. Something like a general strike was impossible, because after purging anyone who sounded like a communist, there was no solidarity, no greater vision, and no willingness to really fight, since those are all things that make you sound like a communist.

Now, admittedly, from a global perspective, the Chinese people have benefited immensely from offshoring, so whether it's a good or bad thing overall is hard to say. But, good or bad, it's the reason why the US in such a shitty state today, why the government is able to cut social programs, why nobody can do shit to stop anything Trump does, etc. The most direct enemy of the American ruling class are, of course, American workers (and vice versa) so us getting fucked means that they are now able to operate with impunity with nobody to stop them.

Regardless, what we need to do now, as a class, is to rebuild organization from the ground up, but this time refusing to punch left and purge radicals, and to instead actively promote solidarity, a greater vision, and a willingness to fight.