Emily Newcomer
People often share the common belief that new technology is taking over the economy and that jobs are often lost due to these improved technologies. They think that robots and advanced machinery are replacing the need for human labor, thus decreasing the amount of jobs available. However, emerging technology has actually created more jobs than it has destroyed. This increase in demand for workers will eventually lead to a larger workforce, which will then cause a more productive and expansive economy to emerge. Therefore, we should welcome these new technological advancements because robots won’t be taking over the economy any time soon, but instead helping it.
As with any point, there’s always a counter-argument, and in this case, it’s that the amount of jobs in the agricultural and manufacturing industries have decreased over time. This is due to the more efficient methods of farming and manufacturing that have been produced through technology. The argument is valid, but these job losses are far more outweighed by the jobs gained in other industries. For example, industries such as medicine and management consultancy have boosted productivity with both better technology and more workers. As seen in these industries, modern technology and high employment rates go hand-in-hand. Additionally, with new technology comes the need for a different education and skill set (Makortoff). As society adapts to become well versed in high-tech, more job opportunities will present themselves because knowledgeable workers will have to teach others how to work with new technology.Another beneficial effect of new technology, one that might not be as obvious, is that consumer income can be distributed widely, creating even more job opportunities. When machines replace labor, products are produced at lower costs and then consequently sold at lower costs. If consumers no longer have to pay as much for a good or service, their money can be dispersed into other “unthought-of new areas: gym membership, short holidays, and overpriced coffees” (Makortoff). These changed spending habits can create new employment because a business with increased trafficking needs workers and increased demand will aid businesses in their ability to pay these extra workers.
Lastly, technology has opened up a whole new world of jobs through innovation, social media, and so many other aspects of the internet. Jobs that involve Cybersecurity, Internet of Things (IoT), and artificial intelligence didn’t exist a few years ago. Now, “43-53% of new job titles that have emerged in the past 10 years are in ICT (Information and Communications Technology),” (Eswaran) in India, Malaysia, and the Philippines, all of which are countries that are currently growing economically. Innovation and entrepreneurship create jobs by establishing new businesses and concepts, and these ideas are most often aided by technology.Technology eases our workload more than it takes our jobs. A census study that was shortlisted for the Society of Business Economists’ Rybczynski prize indicates that the “rise of machines has been a job creator rather than making working humans obsolete” (Technology). So fear not; robots won’t be taking over the economy any time soon, but instead will open up more job opportunities.
Works Cited
Eswaran, Vijay. “How Emerging Technology is Driving Job Creation, New Industries.” Chief Executive, 9 Aug. 2018, https://chiefexecutive.net/how-emerging-technology-is-driving-job-creation-new-industries/Makortoff, Kalyeena. “Don’t fear the robots, tech creates jobs: report.” CNBC, 19 Aug. 2015, https://www.cnbc.com/2015/08/19/dont-fear-the-robots-tech-creates-more-jobs-than-it-destroys-report.html.
“Technology has created more jobs than it has destroyed, says 140 years of data.” The Guardian, 18 Aug. 2015, https://www.theguardian.com/business/2015/aug/17/technology-created-more-jobs-than-destroyed-140-years-data-census.
https://docs.google.com/document/d/1ZplSIj7_5D6K-qboGBmsNei3doF0x5X9z4day17jxVU/edit
The big debate about the future of work, explained
This is super interesting; it's a common misconception that technology is taking over the job force, and I think that people fail to realize that the production of this new technology will, in turn, create more jobs to produce the new technology. Anyways, companies will only invest highly in technology when it makes fiscal sense and when their MPL/Wage = MPK/Rental rate. When companies begin to invest more in technology, it means that they are able to produce the product at a lower cost, and thus make more money, assuming that the market is relatively elastic.
ReplyDeleteI think people are scared of what they do not understand. In this case, the average worker does not understand that firms utilize a principle known as the "cost-minimization rule" in order to determine how much of each factor of production to fund. How many robots vs. human laborers that are hired depends on at what quantity their marginal products per dollar are equal. If robots have a higher MP/$, more of them will be "hired." This is because of diminishing marginal returns; as more of input is employed, its marginal product continues to decrease due to limited resources. The average human worker most likely does not realize this, and instead blindly claims that robots are stealing their jobs. Looking to the future, the workers should come to see that this new technology opens doors into other industries that will expand demand for laborers.
ReplyDeleteThis reminds of recent concerns over trade deficits and cheating relating to international trade in general. While it may not look fair on paper, the overall benefits provided to society as a result of free trade (cheaper products, specialization, elimination of more dangerous/undesirable jobs, etc.) I would argue outweigh any possible concerns some may have. While one could argue that NAFTA/USMCA benefits some of its members more than others, this is natural for any deal made and the current reliance that most states have on free trade with the other two countries (like Wisconsin so heavily relies on Canada) would make it risky to leave it. In the same way, technology may have some surface level issues it causes in relation to jobs as you pointed out, but, theoretically, like the flowchart you put in your post, it should and generally does more help than harm.
ReplyDeleteWhile technology does increase the overall ability to achieve jobs while creating new ones in the process, it also raises the bar of those jobs. New jobs for new tech engineers for new technology may be created, but those jobs usually require a college degree from a prestigious college and 5 years experience. Students right out of college may have trouble finding these sort of jobs if even after college, they still don’t have the requirements and are monetarily drained.
ReplyDeleteOn the contrary to technology increasing job opportunities, these jobs have been diminished by the fact that robots can do jobs quicker, more efficiently, and there is no room for human error. Additionally, they don’t need to have lights turned on in factories so the companies save money from the electricity bill, and then they don’t have to pay robots a salary. They will work for nothing because that is how they are programmed to do things. Technology has a lot of benefits but that just has to be kept in mind.
ReplyDeleteThe fear of replacement from robots is a very real one, but it really depends on what industry you are working in. As stated, the agricultural industry has seen the greatest drop off in terms of human labor, but the industry is as strong as ever due to the technological advances in harvesting techniques. From a producer standpoint, it is easy to see how robots are so attractive; no salaries have to be paid, no human error, and efficiency would be maximized. So, summarized, robots are cheaper and more efficient. However, from the employed person's standpoint, it is a scary thought imagining a robot taking over their job. In the long run, the technological advances are simply creating more jobs, rather than harming them.
ReplyDeleteWhile improved technologies and automation may increase jobs in other areas, the short term around the implementation of new technologies for workers isn’t good. New technologies will leave these workers unemployed and searching for a new line of work. A lot of workers have gone to school for these jobs, and it may not be the easiest thing to find a new one. So while new technologies may be creating jobs in other areas in the future, technology is leaving tons of people unemployed and searching for a new line of work.
ReplyDeleteNobody can disagree that technology is changing the workforce with so many jobs revolving around it. I think that it new technologies can create new jobs but unfortunately many of the people who were working the jobs that got taken over might not be qualified for them. This leaves a large number of people stuck without a job and without the means to get the higher education they would need to get one.
ReplyDeleteI agree that in cases where technology is a complement to labor, increased technology will increase employment. This is because, as you said, technology can increase the MRP of every worker in a firm, thus it would be worthwhile for a firm to increase employment (to where the new MRP equal the MRC). However, in cases where technology may become a substitute for labor, like in the car manufacturing industry, it would decrease jobs. As you stated in your research, this unemployment in some sectors may be offset in others; however, I think it should also be taken into account that the jobs in which technology can be used as a substitute typically do not have workers with a high investment in human capital. This may make it difficult for these workers to find jobs in the new labor market. Therefore, I think that the current effects of technology in the resource market has a negative affect on employment, though this is subject to change with the future increase in human capital.
ReplyDeleteIt is true that many people are skeptical of the increased presence of technology in the work force and are often unsettled by the potential of their job being taken by robots. It depends on what kind of profession you obtain, as jobs that require a higher skill level are at a lower risk than jobs that include patterns and a low skill set, like truck driving, working in a toll booth, or working on an assembly line. However, as you mentioned, technology is doing good things for our economy and the American people. For one, it is increasing productivity and, henceforth, making costs lower and increasing consumer spending on 'wants', and furthermore, increasing the nationwide GDP. It's interesting to apply what we've learned to real businesses who are employing capital as their labor source. Odds are that, because a robot might cost less, they will employ more than a worker, who might demand a larger wage. Where ever MRP = MRC is where they are going to hire, so they want to keep their costs to a minimum and productivity to a maximum.
ReplyDeleteI totally agree. The only jobs robots are "stealing" away from us are jobs that require hefty physical labor, or tedious, time-wasting actions. The fact is, they open up even more jobs in other fields like you said. It seems like there's a lot more hysteria about this kind of thing than there really needs to be, and a lot of it can be contributed simply to the fact that a lot of older people don't like the idea of new technology in general.
ReplyDeleteWhile it is a huge fear that people will lose their jobs due to advanced technologies, people need to realize, that also long as we have a strong economy, there is also going to be a spot for them in the workforce. I think that its a positive thing that people in the workforce working on products that easily can be done by robots, are pushed to do different jobs that require less strength per say, and more mindset. In this day and age, it is very easy for a machine to do all the hard work, so we should start putting that brainpower of these workers to another job that they can help further along, not in production, but in design or advancements. The economy is sifting towards robots and its better to embrace them and work out any problems that occur than to be left behind.
ReplyDeleteAh, but the true gains from automating manual labor is that real life humans don't need to do that work. In places like America, people have white collar jobs where you get paid a lot for not a lot of work. We exported those hard agricultural and manufacturing jobs to China, and they passed the potato to Indonesia. My wish is that we reach a place where everybody works service jobs and nobody bears the burden, and then we can eat materialized food like in the utopian star trek universe of the future.
ReplyDeleteThis subject is something that is very controversial, as many hold the opinion that all the new technological advances are putting people across the globe out of jobs. However, this side shows that it is in fact helping many. Technological advances can shift supply curves to the right, as they can lead to decreases in production costs, which can eventually cause in change in the number of workers to help with this increase of supply. Soon more and more technological advances will come our way, leading to greater efficiency consumers, and more jobs for the producers.
ReplyDelete