In the article "How robots will
kill the 'gig economy'", it talked about the innovation that will take
place in the future. The article talked about how many jobs in the near future
will become automated, such as Uber drivers, machine operators, and certain
delivery services.
One analyst made a
prediction stating, "We forecast that 16 percent of jobs will disappear
due to automation technologies between now and 2025, but that jobs equivalent
to 9 percent of today's jobs will be created,". Many jobs will become
automated, however the increase in jobs will come from the need to repair and
install such systems. Uber believes that they will not replace their current
drivers for a few decades but they are striving towards automated
drivers.
This article was very interesting
because it almost takes the stance that this increase in technology will hurt
the economy and cause higher unemployment rates. However according the Solow
model, an increase in technology will cause growth in the economy and a higher
standard of living. This is due to an increase in the total factor of
productivity or A. This would intern cause a higher steady state. I believe the
article is looking at the short run because the Solow model shows that
standards of livings rise in the long run due to the increases in the total
factor productivity.
http://www.cnbc.com/2016/03/09/how-robots-will-kill-the-gig-economy.htm
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ReplyDeleteInteresting how when you brought up the Solow model my perspective kind of changed. I agree that the Solow does show that advances in technology will enhance quality of life and growth. However, I think about the kind of technology the Solow model refers to. Technology designed to be operated by humans? Or technology in general? As robotic developments move forward we may see an increase in technology actually contradict the model.
ReplyDeleteI agree with Doug's comment above. The solow does show that advancement in technology will increase but on the contrary the repercussion of it is that their will be a further decrease in the employment rates of upto 16% as early 2025. This is worrying as this can have a great implication on the Us economy and the World economy as a whole. Innovation has its advantages and disadvantages both.
ReplyDeleteI agree with Doug's comment above. The solow does show that advancement in technology will increase but on the contrary the repercussion of it is that their will be a further decrease in the employment rates of upto 16% as early 2025. This is worrying as this can have a great implication on the Us economy and the World economy as a whole. Innovation has its advantages and disadvantages both.
ReplyDeleteAs you mentioned in your article, the observation suggests that the unemployment rate will decline. But at the same time, this effect can be cancelled out with the employment of labors needed for the repair and installment of the systems. Now my question is that in the future they can come up with technology that can do the repairing and installing, how will the unemployment rate look then?
ReplyDelete