Introduction- How Is Technology Affecting The Economy?

     This blog contains a series of posts about technology and how it has been affecting our economy in different ways. Technology has primarily been linked to the nation’s wealth, change in the marketplace, standard of living, employment, and international trade, but there are several other things that have continued to be huge factors in our society and the economic state of this country. The use of technology in the United States has both improved and brought down the economy, and I have included information on both sides of the spectrum.

 

 

How is Technology Affecting The Marketplace?

     The innovation of online shopping has made it easier to buy goods quickly and often much cheaper, so retail stores are getting much less in-store business. The retail sector would have a loss of almost 40 million jobs in the next twenty years if online shopping continues to grow in popularity. On average, 6 percent of all retail sales are done online, and it is projected to increase to at least 20 percent within the next decade. This type of technology has become a positive effect on the economy because consumers tend to make more informative decisions on products with the use of technology, but it can easily hurt consumers because online shopping makes it easier to buy on impulse. Shipping companies are getting much more business because of these purchases as well. Consumer spending has increased because of technology, which leads to a healthier economy. When people make confident buying decisions, the economy typically does better. 

 

How Is Technology Benefitting Manufacturers?

     New kinds of technology increase the efficiency and thus lower the cost of production. A manufacturer can produce a significant more due to the lowered cost of parts. A major factor that manufacturers are dealing with is the decreasing need for employees. Machines can work more efficiently and at little cost, whereas employees can be much slower and require an income. An increase in the level or production can help boost the economy, but also creates the problem of unemployment. Manufacturers are benefitted by technology, but contribute to unemployment at the same time. They are forced with a tough decision, and both have negative and positive effects on the economy.

Combine

Cotton Gin

How Is Technology Influencing International Trade?

     The invention of technology has helped considerably change the way that countries trade goods. Because technology improves the efficiency of production, the United States has the ability to make more goods in a shorter amount of time so that more goods can be traded worldwide. Because of technology, we can easily converse with other countries, and thus trade goods more efficiently. The national debt is linked to the trade between countries, so an improvement with technology-related trade could be a huge factor in getting our economy back on track again.

 

How Is Technology Impacting Communication?

     Technology changes communication entirely. There are tons of ways that businesses communicate with others and it has helped improve efficiency of relations and trading among them. Businesses thirty+ years ago had essentially three ways to communicate. They could either use a phone, write a letter, or visit in person. Now, businesses have more options, including internet media, texting, chatting, and web and video conferencing. Businesses can communicate faster and more effectively while saving significant time and resources. Time and money spent traveling has been reduced through virtual meetings using web and video conferencing. Unplanned meetings can now be far more effective because companies can quickly get the information they need from another business. Businesses can put this saved time and money to use for other needs that could not have been considered before new communication options.

Is Technology Helping Or Hurting Employment?

     New inventions of technology have employed tons of workers and created many types of jobs, but they also take people out of jobs in many circumstances. Machines have taken the place of workers but certain types can also create jobs. For example, as the auto business changed, the employees had to learn new skills or change jobs depending on the situation. New innovative technology can increase the number of jobs available, but in most circumstances technology has taken the place of a majority of jobs in certain areas. The wireless industry has employed thousands of workers for the App business, which is one way that technology has helped the economy. A growing business has the potential to increase the number of jobs available, which balances out the shortage of workers due to new machines.

Creates Tons of Jobs

Takes Away Majority of Jobs

Can The Use Of Higher Technology Increase Our Nation’s Wealth?

     Certain kinds of technology require specialist in order to effectively use them. Because of this, a higher wage is typically given to the employee. The use of machines has provided new jobs, but employees need to be educated on how to use them. This new extra effort obligates the company into raising an employee’s wage. The use of technology is so widely spread that the level of income has increased among many workers around the country. The overall increase in wages has contributed to the nation’s increase in wealth. Although it doesn’t show much in our economy today, higher technology has helped with the nation’s wealth and the economy that it contributes to.

 

How Has The History Of Technology Contributed To The Economy Today?

     During the Industrial Revolution, the inventions or machines created more jobs that were easier and took much less time for the production of goods. That was the start of the Technological Era. Jobs became more efficient and thus improved the overall standard of living. Machines and other kinds of technology have advanced us a considerable amount since then, and have set us up for the present era, the Technological Revolution. Machines have become so convenient that they have been placed everywhere. Although this may seem like a good change, the workplace has been hurt a considerable amount and has contributed to the worsening economy. The innovation of technology has a substantial impact on the economy, and if used correctly, could have the power to bring this country back in control of the economy, and even more importantly, the growing national debt.



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US Exports From 1900-1960 (Notice the continuous increase)

How Will Technology Get Us Out Of Recession?

     The economy can help lift us out of the recession with increased consumer spending due to a new technology. Green technology has been projected to help as well, with creating building and product efficiency while inventing smarter solutions to hazardous devices. Although the idea of Green Technology is a smart solution, it will not grow big enough to make a huge impact on the country’s economy. This method would also cost a considerable amount of money, so in reality, the process would hurt the economy more than it would help it. There are many ways that technology could help improve the economy, but it will take more than technology to get us out of recession.

Why Is The Economy Not Keeping Up With Technology?

     One of the problems of the economy today is that we are struggling to keep up with technology. Change is happening so fast that median workers are having a tough time keeping up. The technological progress is not the problem; it’s the holdup being caused by slower workers. The difference in time and efficiency between machines and workers are not balancing out. Compared to the beginning of the 20^th century, the US is now producing and consuming 6 times more products. On top of that, the use of machines has caused an 8 percent increase in efficiency throughout the country.  Tyler Cowen, a professor at George Mason University, stated that “When real productivity gains are happening, employment always follows.” The economy could be thriving right now if workers could produce at the same speed as technology, but because it doesn’t balance out, it has become a crisis and will continue to hurt our economy until something is done.

 

What Affect Do Huge Tech Companies Have On The Economy?

     Companies such as Apple carry widely used products that are in constant demand. The innovation of a new product at a huge company lie this can cause a significant boom in the economy. The increase in demand of a new type of technology is related to the entire market industry, and affects much more than the initial company. It can easily create a domino effect throughout the entire economy. Also, technology could have the reverse effect on the economy as well. A decrease in demand of a product can have devastating consequences on the company which can easily spread to other companies in the same industry and create a major economic downfall.



Single New Technologies Provide the Need for Numerous Accessories

What Types of Businesses Are Being Threatened By Technology?

     Tons of businesses are losing consumer interest in their products because of new technologies. Cell phones have taken over landlines. CD’s are replaced by iTunes, and books are being exchanged for Kindles. Blockbuster and other movie rental stores are having to close down because of Netflix. Ice cream stores are losing consumer interest because of the new frozen yogurt places such as Menchie’s, or Orange Leaf. Many more companies are losing business because of higher technologies and they are contributing to the rough economy.

What Are Some Major New Technologies That Are Affecting The Economy?

     Mobile devices have impacted the productivity of the workplace. In a study of 230 mobile device users, the average user worked 15% more during the day. They have extended the work day, but it hasn't necessarily been a good change. People are using mobile devices more often but most abuse it.

     Home technologies that lead to automation can control items from your television, to your oven, to your thermostat setting. Extreme technologies such as these change our expectations and allow remote access for efficiency. For example, the ability to lower a thermostat setting and turn off appliances and lights not in use can reduce power usage and lower costs. Power can then be shifted to other business needs as necessary.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

How Is Technology Impacting Wall Street?

     Technology used in software can make a huge impact on the efficiency of stock trades and the general market. When computers screw up on Wall Street, they make millions of dollars' worth of bad trades. Bugs in software can have a huge effect on the market, and can definitely have positive factors on traders specifically. Software allows them to buy and sell commodities at fast speeds. The invention of this type of software is continuing to change a big portion of how Wall Street operates.

How Does Technology Improve Our Standard Of Living?

     The definition of machine is “a device that performs or assists in the performance of a human task.” Machines have helped with a majority of jobs, in that it improves work ethic for better working conditions. Because of the use of technology in the workplace, common work hours have dropped to 40 hours per week, compared to the common 60 in the early 20^th century. The use of technology in a factory makes a job much easier to do, and much safer for those with certain health concerns. Certain technological tools, such as the light bulb or cell phone have improved the country’s standard of living. Advances in technology are also linked to an increased level of income, which certainly can improve one’s perceived wealth and lifestyle.