What effect does new technology usually have on an economy?
Posted by admin in Finance Wednesday, 17 November 2010 05:35 2 Comments
1 It reduces the dependence of the economy on business.
2 It makes the economy stronger and more efficient.
3 It slows an economy down for at least a while.
4 It reduces the available jobs.
Well, the hi tech boom was great for hi tech people but also for the people who served them coffee and sold houses to them.
On the other hand, robots put auto workers out of work and helped turn Detroit into desolation row.
2: it makes the economy stronger and more efficient.
The world has become a global village and in order to be able to compete with the competitors all around the world, one economy has to improve on its level of technology. This will then require more education, and skilled workers, ( which then on the other hand reduces unemployment but keep that factor aside at the moment). This will give a rise in the GDP of an economy.
Thus, new technology has a positive effect on the development of an economy.