Technological progress is essential for economic growth of an economy. But it's always labour-saving. Continuous technological progress will therefore lead to 'jobless growth'. With widespread unemployment the increasing supply of commodities because of technological progress will eventually fail to create enough demand for the same. Simply there will be overproduction. However I do agree that there will be some compensating effect on employment.The World Bank's World Development Report 2019 argues that while automation displaces workers, technological innovation creates more new industries and jobs on balance. But my question is will this compensating mechanism be able to absorb all the displaced worker ? If the new industries are also capital intensive then the unemployment problem will continue to grow. There will be higher unemployment, higher supply of commodities and lower demand in the economy. If this continues can we rule out the possibility of occurrence of another great depression ?
Dear Parswa! I totally agree with you/ Technological advances bring not only benefits but also problems. And one of them is the risk of losing many jobs and the displacement of workers which will be substituted by machines.
Technological progress can be better implemented in developed countries but not in developing countries on the sake of labour's elimination from their work. So we can't ignore the possibilities of upcoming depression in these countries like India.
The "crisis" we live in is artificially financial, managed by those who control large amounts of capital.
Therefore, it is functional to the planetary "control" system that has been in progress for some time and that it would like to increase in the future.
Everything else is pure speculation.
https://www.progress.org/articles/the-depression-of-2026
I am sharing the view of Prof. Földvary.
At the same time, I am also pointing to the real growth engine of the 21st century:
https://www.sociostudies.org/almanac/articles/the_sixth_kondratieff/
So, we will have a clear global inter-section of contra-polar events around 2025/2026, according to my study of cyclical economic conjuncture.
The specific country outcome of creative destruction and exponential technology depends on the practiced economic prudence in that political entity; we can learn from economic history that greater socio-technical innovation does not come from leading world powers, in terms of energy efficiency, monetary policy and spiritual force.
In any case, a next generation economic system is already in the making.
Dear Parswa,
Many authors have arguments more pessimistic than yours.
The critical question is:
- What will be the role of Artificial Intelligence (AI) ?
From the answer of above question we'll be able to make infers for the future.
However, given how past revolutions were done, I think that we'll face next steps:
Sorry for not being optimist, History has shown above steps...
So my answer is yes, there will be recession.
Dear Demetris,
My view is not pessimistic at all. I am strongly in favour of technological progress which is for greater social and economic benefits. Because without technological progress economy can't grow. But I do think that there should be a limit . Technological progress should be allowed to a particular level beyond which it starts to displace most of the workers from their job. This optimum level of technological progress may be different for different economies and may be subjected to the available workforce and some other factors.
Dear Parswa,
Your desire is reasonable and I also would like to see it happen too.
However, when in history a big technological revolution asked people and -in advance- accepted limits in its expansion?
That's the problem: nobody will ask you or me!
Does there exist any threshold limit of technical progress outstrip of which may lead to deterioration in unemployment and a heading way to stagnation?
- Badges
- Science topic
- Similar topics
- Filing