The importance of Technological Change and Economic Growth

Technology has changed the way we look at the world. It has deeply affected the global economy in a huge way. Technology has played a major role in international trade, and it has transformed the marketplace and has improved our standards of living. Today we have robotic systems which operate an entire manufacturing unit and other innovative systems which deliver the product and service in no time. The advanced in the Information Technology field along with the telecommunications has created job opportunities for many people, and it has also contributed to the economic growth.

Technology and economic growth:

With the internet, the world has overcome the physical barriers of communicating with each other, and this has also helped consumer goods and manufacturing companies to develop many links all over the world and provide proper customer support.  Though various automated systems, the suppliers can have a check on the efficiency of the product that is produced and they can export it to various parts of the world.

The technological changes have brought about a great economic impact. When companies try to cut down various technological investments thinking that they are spending less money, they are actually losing their profits, and the productivity of labor starts to fall due to inefficient technology to support them. Technology fuels the economic growth in many ways. The advancements in robotics have brought about the production of efficient quality of service and products. Many hands held devices are manufactured to make our life easier and comfortable.

Technology has a great impact on the current market trends. When technology came into the picture, the market indexes of companies like Dow Jones, S&P have drastically changed, and the technology powerhouses like Google, Apple, Amazon etc. have taken control of the market, and their stocks are valued more than other industrial companies.

The downside of technological change:

One of the biggest downsides of technological change is the impact it has on the distribution of income. Many machines have replaced the jobs of many people. The ones whose jobs are replaced by technology find it harder to get a new job as they struggle with acquiring the advanced skills.  The population who worked in agriculture has drastically decreased as lot machinery was introduced. As years go by, technology will certainly grow and it at the same time it will replace the jobs we have today.

As technology is constantly growing it is better for the current population to have a fresh look at education so that they will be able to learn various skills that are needed to match the jobs we have today. For job opportunities people need to be re-educated to have an advantage; this has been made much easier with the internet where you can find plenty of materials from which you can learn and develop your skill sets.