Technological Crisis
By: Kaylah Gray
With todays day and age it seems that everything is becoming electronic. Letter writing and faxes were replaced by email, paper checks were replaced by direct deposit, and disposable cameras were replaced by a app that is found in each cell phone. Though all of those changes were made decades ago, the producers have wasted no time bettering the technology. Now email is replaced by text messages and snapchat and a check can now be deposited by sending a picture of the check to the bank. Whether it’s known or not, this new technology advancement has put the economy into second machine age. The picture below represents the technological hold that is on our economy.
Household electronics are not the only ones that are seeing advancement. According to the article “How the rise of smart machines will affect the U.S economy and jobs” the author, James Pethokoukis stated that some of the technological advancements are taking place in the work place. Now a days, the better an individual is with technology, the more qualified they become for a job. There isn’t a workplace in America that does not involve the use of technology. Those that are great with technology become a more valued part of society, while those not so great will find themselves in structural unemployment.
Though the second technology age is affecting the workplace, it somehow does not show up in the country’s GDP. Pethokoukis believes that one of the biggest problems we face is measuring our productivity. Because the economy is missing more and more of the digital age all of the free goods don’t show up in the GDP. These goods are a huge part of the GDP, but are badly mismeasured because they are introduced into the market and then the prices drastically decline. Because of this, Pethokoukis believes that there is a serious problem with the economic statistics.
The effect of technological change has created an influence in the retirement decision of older workers, the skill acquisitions of younger workers, and the wage structures of those employed. Those that are more advanced in technology, make more money then those who are not. According the article, “Technological Change and the Labor Market” the authors Ann P. Bartel and Nachum Sicherman stated that with all the technological changes, the human capital rate is starting to depreciate. Now that technology can take someone’s job, there is no longer a need or want for on the job training. An unexpected increase in the rate of technological change can lead to a depreciation in human stock, decreasing the rate of investiment in human stock. If older workers are not willing to advise their investiment in human capital, it leads to earlier retirement.
Though every piece of technological item there is was created to make our lives easier, it is starting to do the exact opposite. The advancement of technology is starting to affect the workplace and is sending us into another technology age that is increasing unemployment in some areas and decreasing the retirement age in others. The new technology advancements we have made aren’t affecting the GDP as it should. Because of the drastically decline for demand and prices after introduced to the market, it is hard to correctly calculate the GDP. It is because it’s hard to calculate the GDP on technology that it is affecting the Economy. (evolution of technology)
Works Cited
Another thing to think about to relate this to the economy, is if unemployment will increase due to the continuous rise in technology. If technology continues to increase to the point where it can less expensively and more efficiently get jobs done 'robots' will soon be doing most of the jobs in the country. It makes you wonder if there will ever by a stop to the advancement because our world wouldn't function the same if it were run by all robots.
ReplyDeleteThe rise of technology in the workplace has certainly had an effect on the US economy, and especially on the job market. I’ve witnessed my mother, who is a Spanish teacher have to go through retraining in order to deal with the changing technologies. She had to learn how to use powerpoint, twitter, google docs, etc. As technology increases there is no doubt that mastering it will be a great benefit when finding a job.
ReplyDeleteI really like this topic. I was just thinking the other day that we used to have so many different devices for different things like a camera, phone, answering machine and video cameras. It is weird that most of these things aren’t even needed anymore. We use one device, our phones, for all of these different functions. I can’t even imagine all of the jobs that were lost because these things aren’t useful to most people anymore. Although this is good that we are advancing technology, it definitely affects our economy and not always in a good way. It amazes me how the slightest things can change our economy so much.
ReplyDeleteFor most of us, this topic is really important as we start to enter the work world. As time goes on, we are going to have to learn more and more technological advancements in order to do the job that we are looking to do. It's crazy how all of this technology has been introduced just in the past few years. By the time that we are out of college, and going into an actual career job, who knows what were going to have to know by then. Eventually, there are going to be so many people out of jobs because of this, it really has no pros in our economy, except for the fact that production will be faster, but is that really whats important? Good topic!
ReplyDeleteTechnology is an ever changing and unpredictable topic. It has changed and shaped so many jobs. It has called for new training and more qualifications. To last in the workforce, it is almost necessary to have a smartphone and be able to work important software's.Although this is good that we are advancing technology, it definitely affects our economy and not always in a good way. Unfortunately, the more functions we can do on our devices, the less jobs there will be which will lead to unemployment. Technology consumes us and with all the increases, our economy will change in many ways.
ReplyDeleteTechnology can be as unpredictable as to the stability of the economy. Nothing can be a sure thing. The unpredictability goes with the new jobs positions that are out there as well. There are older people who may have more experience at a position, but that person may not be qualified to run a newer position that is of higher prestige and requires more qualification that would involve knowledge in newer technology. It affects people more and more every year, and the world is only going to be more technologically advanced as we age.
ReplyDeleteThis was an interesting topic! I'm just wondering now how these technology advancements are going to affect the near future. With all of the advancements that we're having are people really going to be able to keep up? Also if the elderly can't learn the new skills that are required and choose to retire early, are they going to have enough money to last them for the rest of their lives? Although I think these could be major problems within our society, I think we've gotten to the point where we're so dependent on technology that there's no going back. The best option for us is to find a way to balance jobs and skills with technology.
ReplyDeleteWhat happens to the job market now with human capital becoming less valuable with the advancements in technology. With so many new innovations for machinery, there is an increased risk of more people being pushed out of the job. Now, people need to focus their careers on technology and innovation in order to not only acquire a job, but also have skills to hold onto one.
ReplyDeleteHonestly, I don't see the loss of unskilled labor to technology as incredibly problematic. Though it does kill some minimum wage jobs and whatnot, most of those jobs provide too minimal of an income to support a family or even a single person who needs to both pay rent and eat. The true dilemma will be at hand when in the distant future we make robotic philosophers and physicists and mathematicians who replace humans in research and specialist positions that provide large amounts of income. Until then, automation is no threat to the most valuable of jobs.
ReplyDeleteThe subject of technology and its advancement is difficult to write about because of its volatile nature. Applications have seen advancement both on and of the phone. That being said, I can easily agree with your stance on the issues. With technology making our jobs easier, we have to take into account the fact that it will also change the way we work. Although some jobs have been eliminated entirely, this cannot be interpreted as a completely bad paradigm shift. There are positives as well as negatives to the technological revolution that must be taken into consideration. Food for thought.
ReplyDeleteWhat we tend to forget that with every new technology jobs are created. Someone has to create that machine, someone has to be qualified to fix it, and someone has to be qualified to know how to run it. So when you say we are losing jobs because of technology and machines replacing people, it’s actually just creating jobs as well. (Kind of like replacing them) You need someone to set up the machine, and like I mention before, able to fix, run the machines. So even if it seems like technology is taking our jobs, it’s kind of just creating new ones.
ReplyDeleteIts weird to think that there are new technology innovations that are creating a wider variety of jobs. Now I'm sure there are more and more technology innovations that are creating more higher paying jobs. People are losing jobs, but not as fast as people are getting new jobs. People are needed to set up the machines and know how to run them, while there are jobs for people that are even creating the new products that are made everyday. New entrepreneurs are developing new ideas that could take a year, up to many years to bring their ideas to the world. Even though it may seem as though technology is taking many of the jobs that have just been created, they're actually bringing new jobs to the world for a better output of the technology. It's always difficult to think about the future and try to predict what it will bring. But, it's pretty clear that the technology is going to continue to increase and bring new items to the world! This was a great blog post, I just don't get how the technology would be hurting the job market.
ReplyDeleteYes technology makes jobs easier and faster and more efficient, but it also can make it very difficult for someone who is not very familiar with technology, to get a job. Also, with technology on the rise, it isn't uncommon for someone to lose their job to a machine. As we become more and more dependent on technology, we find ourselves not knowing what to do with a power outage or a computer malfunction- we completely fall apart without it but it also cause so many issues. Any person would have a different opinion on technology in their workplace, it all depends on how it affected them personally, whether it took their job or made it easier.
ReplyDeleteA lot of people believe that all of these technological advances are good things when there not. I feel like in due time they will end up sending the country in anther depression because people are going to lose their jobs to the advances in technology and they won't have money to spend and it will be the great depression all over again.
ReplyDeleteI find this post very interesting. She had stated that "Those that are great with technology become a more valued part of society, while those not so great will find themselves in structural unemployment." I agree with this a little but not to much the reasoning behind this belief is because if people didn't know much about technology that doesn't necessarily mean that they wouldn't get motivated on having a job. I think that if people don't know much about technology and they see other who know well about it would want to learn and be just as experienced as them. Technology will always increase no matter what and that's a fact. People know that. I think that by increasing technology lacks independents and street smarts but But having it increase that gives more people wanting to learn... because eventually they're going to have to learn which will then increase the unemployment with people off to collage. This includes older teens and adults as well.
ReplyDeleteKaylah, I think you chose a great topic to talk about since technology is rapidly increasing. I am a little afraid of how much technology will impact the future, I recently saw the movie HER and all the technology within the movie was so fascinating and advanced. But like others have said, what will the older generations do? I know my grandparents struggle using a flip phone, I can imagine trying to explain what Google Docs or PowerPoint is to them. Even though technology is all around us and benefits us, maybe everyone needs to become more independent.
ReplyDeleteThe demand for new technology is huge. People spend hours waiting for the new iPhone or game console. Technology is taking over because we are letting it; as the consumers buying every product. We are always expecting something better than what we had before, therefore technology must advance. Consumer expectations are constantly rising, so businesses feel the need to exceed expectations and blow our mind with something never seen before. But the problem is they will need to maintain this experience.
ReplyDeleteThis is a very interesting topic that feels like it always something that is good to talk about. I've seen some crazy things that will become our future including the glass tablet where anything and everything can be your surface for your computer including a fridge or a counter or even a car. This is awesome but also scares me because then that means anything can be a computer therefore everyone will always be looking down at a computer. Don't get me wrong, I bet this is a great thing for the economy and people in general but it also is going to ruin our ability to just talk to one another and live without posting, tweeting or browsing every second of our life. We will be controlled by computers and maybe in the long run, this might harm the economy more than benefit it.
ReplyDeleteKaylah, I think was a great article to write about due to the fact that this is such a big topic iin our country. After reading the article and all the facts you had it is amazing to really think about how in a few years our how nation could be full technology. I personally do not like how much technology is being used now due to fact that like you said, there is a shortage of workers who are so technology intelligent that we are making our unemployment rise becase they do not have the skills we need them to have. Another thing is that while it may be easier and in th end cheaper, for example schooling, the opportunity cost of making everything go electronic is going to greatly affect children in the long run because they are getting less social time to have real teachings and if something were to be different in college, it could really hurt them because of how much technology they have used through high school. Overall it was a very good topic to write about but personally I think that we shoud back of the technology a little bit or soon our whole nation will be too isolated to communicate with one another.
ReplyDeleteI also think that technology is good, however it is going to effect a lot of people in negative ways. What is great about technology is that it makes our lives better, it makes it essayer for us to survive on earth, however I think that we are depending on something that shouldn't always be trusted. It seems to be that without technology, most of us wouldn't know what to do with our lives. Having our lives depend on technology is going to be a bigger problem than us loosing jobs to robots.
ReplyDeleteThis was a very interesting topic to read, seeing as we are all affected by technology practically every second. With the rate people are creating and depending on such technology, it is understandable and a bit frightening to see how soon people we be replaced and unemployment will rise. Although this is a situation that is happening, it is not happening at a concern able rate. There is still the need for people to discover and create new forms as technology, creating more jobs. So even though we have become more dependable on technology and its helpfulness in the workforce, I believe it still opens up more opportunity for people to obtain a job and develop new ideas -- which would in turn stimulate growth in the economy.
ReplyDeleteI agree that technology advances have been rapidly improving as each year goes by. To think that we were born around the same time digital cameras and modern laptops came out is amazing because technology is something we've always been surrounded by. Sometimes I find it funny that some grandparents don't even know how to use a computer or Smart Phone, but it scares me at the same time. I don't really know why, but technology tends to freak me out and I sometimes worry what the future will look like for my own children. Will they need a huge amount of skills to get a simple cashier job? Will they grow up never learning how to write cursive or mail a letter? Will they even memorize my phone number if needed in an emergency? I know it's common to debate about the lack of face-to-face conversations or in-depth relationships due to technology, but I think there are a lot of other issues it's causing and society doesn't even realize it.
ReplyDeleteThis is such a good topic to talk about since technology is changing our world so quickly. With things like the movie iRobot and the release of HGTV's "smart home" it really makes one scared fr the future. A house that wakes up when you do? Sounds creepy to me. While it would be super cool to have your house start the shower and make your coffee when you wake up; it probably isn't a good thing. Too much technology in our world is making us so much less independent. I don't think I've gone anywhere without m phone in the past 4 years. It's ridiculous. And the truth of the matter is we will never change our ways and technology will continue to take over our lives and the world.
ReplyDeleteThis is the problem in the world, too much technological innovation. Some argue that our generation isn't ready for this big technological push into the future such as these smart homes and new ideas coming out. It is making us as people less independent, which will in turn make us less productive putting all of our confidence and power into the technology around. Thus this will decrease the economy in terms of GDP and increase demand for everything thus increasing the price level forcing us into a recession while the technology will continue to take control of our lives.
ReplyDeleteWhile there will be some measure of structural unemployment at first, as there always is with technological advancement, I still think the long-term benefits outweigh the costs. Technological advancement increases the production possibilities curve, shifts long run aggregate supply to the right, and can cause increased GDP without high inflation. In addition, technological innovation helps incintivise inventors.
ReplyDeleteAlthough it is amazing how so much technology has been invented in a relatively short amount of time, some argue that it causes so much job loss in our country, is it really worth the advancements? Technology advancements have created a certain amount of structural unemployment, but think of how many new jobs it is also creating around the country and world, and also increasing our life expectancy.
ReplyDeleteThis was a very smart topic to cover considering all of the recent advancements in technology. You brought up some very good points, but the point that stuck out the most to me was in regards to unemployment, knowing that unemployment is a large topic of discussion in our world. It is true that new technology can create quite a bit of structural unemployment; it is also true that the advancements are still worth it. Yes, that unemployment is going to hurt in the present, but in the long run advancements in technology means higher rates of employment. People to create it, develop it, market it, etc. Looking into the future, technology will help more than it will hurt.
ReplyDeleteTechnology is very unpredictable, websites can crash on a daily basis and you never know how a certain piece of equipment is going to turn out when ut enters the market. For example, cars get more advance but they still have car recalls and same with the Xbox 1 and PS4 they are supposed to be everything you could possibly want, TV, Internet source, game system and can stream anything, you can even talk to your xbox but they obviously faced problems when they were first released. And there are always those people that are fine with what they have, they have an old mottorolla razor they dont want to spend money to get an iphone, they have a xbox 360 that they can play the same video games on as the xbox 1 they arent gonna spend 500 dollars to get it.
ReplyDeleteThis may seem like a weird connection but the movie Wall-e is a big example of what might happen to the world if we keep relying on technology and improving it to make us more lazy. This will just result in rotating chairs and people will not be working out or eating healthy meals because it's easier to drink your hamburger. Is it really a good idea to keep improving technology? Who knows where we'll end up.
ReplyDeleteIt's interesting to think about how just a few short years ago, technology was helping the economy and workforce so much more than it is now. When technology was beginning to get worked into the workplace, the productivity of companies increased a lot. However, because technology has skyrocketed and has now started to put people in structural unemployment as you mentioned, it is hindering more than helping at this point. It's unfortunate because technology has helped us advance so much but how much longer will it help us advance if it's replacing people's jobs and putting people out of work for extended periods of time? It's also important to consider, the damage it could have on incoming employees out of college or high school even who are looking for jobs and can't find one or won't get hired because their desired occupation has been technologically replaced. As amazing as technology is to our society, it definitely has negative externalities.
ReplyDeleteTechnology has had some negative effects on our economy, but at the same time, it has created plenty of new job opportunities and career paths. There are whole industries that exist today that weren't around even 40 years ago. Some of the biggest companies in the world like Apple, Microsoft and Google are all tech companies that have been started in the past 30-35 years, yet they have had incredible growth and success, which contributes to our GDP.
ReplyDeleteThis topic is a very good one and is something I had actually really thought about. The more and more technology advances the more convenient it is for us, but that could have some unforeseen consequences. The point you made about unemployment is a good one. The fact that technology is extremely helpful but does cause a lot of unemployment makes justifying technology difficult.
ReplyDeleteThis was a very interesting topic, I never knew how much technology has already changed our lives. There is a cost for this change though. More and more people are becoming antisocial because they are too glued to their cellphones. The younger generation is very skilled with technology, which will help parents/grandparents learn about technology which they may use in the future.
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