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.