How Technology Will Take Over the Economy

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How Technology Will Take Over the Economy

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Almost every individual in the world has used technology at some point in their lives. Most rely on it for almost everything- phones, computers, medical treatment, transportation, infrastructure, and so much more. The impact that technology has extends from our daily lives to almost every aspect of society, even the economy.

The economy has been heavily reliant on technology for centuries, but where will technology take us now? The rapid advancement of technology has forced a change in a multitude of ways. Old technologies disappear and are replaced by advanced ones almost instantly. As technology progresses, jobs have required more and more skills, as basic jobs with little-to-no experience required begin to disappear. This contributes to a larger economic inequality. Higher-level workers develop more skills and earn far more than lower-level workers. Consequently, the wage gap rises even more, which contributes to shifts in labor and income distribution, which raises societal tensions.

Since the 1700s, productivity (economic output per labor input) has increased side by side with job growth. As more jobs are created, productivity goes up. However, this began to decline in the early 2000s. At this point, technology had advanced significantly compared to previous decades. Technological inventions such as the iPhone, advanced computers, and numerous others began eliminating the requirement for workers in jobs. As a result, productivity increased notably as job growth began increasing far slower than before, instead of continuing to rise at the same rate alongside productivity. Now, technology contributes heavily to productivity rather than the workers.

How does this affect the economy? Experts aren’t exactly sure about this. Some individuals believe that the economy will collapse due to technological advancements. Others believe the inequality between classes will divide even more. And some, optimistically, predict that more jobs can be created, because, in all of the history of the United States, jobs have never decreased, even in similar events. The predicted outcomes of the decline in job growth differ heavily, and it’s almost impossible to anticipate it. However, with additional research and adequate preparation, the world can avoid an economically devastating event and ensure the stability of the nation.

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