Is it possible for technological change to be negative? If so, give an example.

Short Answer

Expert verified
Yes, technological change can be negative. One example is automation in manufacturing industries which, while increasing efficiency, has also resulted in job loss

Step by step solution

01

Understanding Technological Change

Technological change refers to the advancement in technology which can result in increased productivity, efficiency and overall enhancement of processes. It generally brings about positive changes, like making tasks easier, speeding up processes, or making something possible that was not before.
02

Potential Negative Aspects

However, it can also have negative effects. It can lead to job loss due to automation, an increased gap between the rich and the poor, and negative environmental impacts, among other things.
03

Example of Negative Technological Change

An example of negative technological change can be the advent of automated machinery in manufacturing industries. While this has undoubtedly increased efficiency and productivity, it has also resulted in substantial job loss for workers who used to manually perform these tasks, contributing to unemployment and social inequality.

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Job Loss Due to Automation
Advancements in technology, while increasing efficiency and productivity, can have a paradoxical effect: they may also lead to job displacement. Automation, the use of machines and software to perform tasks that were previously performed by human workers, is a prime example. The advent of robotics and artificial intelligence in industries such as manufacturing, retail, and even services, promises to revolutionize the way work is done, but at a potentially significant human cost.

For instance, the introduction of automated assembly lines in car manufacturing plants may improve output per hour but simultaneously renders certain manual jobs obsolete. As these machines are programmed to take over repetitive and labor-intensive tasks, workers who lack the skills to adapt or transition to new roles within a technological landscape may find themselves out of work. This job loss may not be uniformly distributed, as those with lower educational levels or in certain geographic regions may be more vulnerable, often deepening pre-existing economic divides.

Adjusting to a Changing Job Market

While some jobs are eliminated, new types of jobs are created, which demand new skills. As a result, there is a critical need for retraining programs and education that can help workers adapt to these changes, secure new employment opportunities, and mitigate the impact on livelihoods. This shift in the job market is a central concern when assessing the societal implications of technological advancements.
Social Inequality
The rapid pace of technological change tends to advantage those who have the resources and skills to exploit new opportunities, which can exacerbate social inequality. This disparity emerges because access to technology and the capability to use it effectively are not distributed equally across society. For example, people who can afford higher education are more likely to benefit from technology's productivity dividends than those who cannot.

Additionally, technological advancements can alter the job landscape so dramatically that they create a sharp divide between 'winners' and 'losers'. The 'winners' are often those with the ability to leverage technology for economic gain, such as tech entrepreneurs or highly skilled workers. In contrast, the 'losers' might be traditional workers in industries disrupted by technology, such as retail cashiers replaced by self-checkout systems.

Strategies to Reduce Inequality

Efforts to improve access to education and develop skill-building programs to prepare individuals for a changing economy are critical steps in addressing social inequality. Furthermore, policies aimed at economic redistribution, like progressive taxation and social welfare systems, can be implemented to buffer the adverse effects technology may have on income distribution.
Environmental Impacts of Technology
Technological advances, despite their potential to make human activities more efficient, can also lead to significant environmental repercussions. A stark example is the increase in energy consumption and carbon emissions resulting from the expanding use of computers and servers as our lives and businesses go digital.

The production and disposal of technological gadgets further contribute to environmental degradation. The extraction of rare earth minerals needed for electronic devices has a substantial ecological footprint, and electronic waste creates disposal challenges. Moreover, the planned obsolescence of technology, where devices are designed to have a limited lifespan, accelerates consumption and waste.

Promoting Sustainable Technology

The call for sustainable and environmentally considerate technologies is thus becoming louder. This includes pursuing renewable energy sources to power our devices, designing products with longer lifetimes, and improving recycling protocols to reclaim materials from obsolete technology. Such measures can help mitigate the negative environmental impacts of technological progression and foster a more ecologically responsible society.

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Most popular questions from this chapter

In recent years, the United States has experienced large increases in oil production due in large part to a new technology, hydraulic fracturing ("fracking"). Fracking involves injecting a mixture of water, sand, and chemicals into rock formations at high pressure to release oil and natural gas. An article in the Wall Street Journal indicates that economies of scale in fracking may be considerably smaller than in conventional oil drilling. If this view is correct, what would the likely consequences be for the number of firms drilling for oil in the United States?

What is the difference between the average cost of production and the marginal cost of production?

Why can short-run average cost never be less than longrun average cost for a given level of output?

What are diseconomies of scale? What is the main reason that a firm eventually encounters diseconomies of scale as it keeps increasing the size of its store or factory?

We saw in the chapter opener that some colleges and private companies have launched online courses that anyone with an Internet connection can take. The most successful of these massive open online courses (MOOCs) have attracted tens of thousands of students. Suppose that your college offers a MOOC and spends a total of \(\$ 200,000\) on one-time costs to have instructors prepare the course material and buy additional server capacity. The college administration estimates that the variable cost of offering the course will be \(\$ 20\) per student per course. This variable cost is the same, regardless of how many students enroll in the course. a. Use this information to fill in the missing values in the following table: $$ \begin{array}{c|c|c|c|c} \hline \text { Number of } & & \\ \begin{array}{c} \text { Students } \\ \text { Taking the } \\ \text { Course } \end{array} & \begin{array}{c} \text { Average } \\ \text { Total Cost } \end{array} & \begin{array}{c} \text { Average } \\ \text { Variable } \\ \text { Cost } \end{array} & \begin{array}{c} \text { Average } \\ \text { Fixed Cost } \end{array} & \begin{array}{c} \text { Marginal } \\ \text { Cost } \end{array} \\ \hline 1,000 & & & & \\ \hline 10,000 & & & & \\ \hline 20,000 & & & & \\ \hline \end{array} $$ b. Use your answer to part (a) to draw a cost curve graph to illustrate your college's costs of offering this course. Your graph should measure cost on the vertical axis and the quantity of students taking the course on the horizontal axis. Be sure your graph contains the following curves: average total cost, average variable cost, average fixed cost, and marginal cost.

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