A lot of people tend to think that it is the economy that fuels technological progress. This is because of the mistaken idea that economic and social progress is the main driving factor for technological development. But when it comes to economic growth and development, it is much more complicated than that. In truth, technology and the economy have got a very complex relationship. It can be said that economic progress is actually driven by technological development. It is through the development of new technologies that human society is even able to progress in the first place. And the rest of this article will be able to shed some light on that particular topic.
Technology is disruptive
One of the main disruptive forces in any society is technological development. As new technology gets developed, it means that more kinds of growth are possible for human society, in general. All of the biggest changes in the world are caused by some new kind of technology. The industrial revolution improved the lives of millions of people and forever changed the world, and that was a mere few hundred years ago. The digital revolution is still on-going today, and it looks like this new kind of technology is something that has got even more of an impact. Only time and research into that new technology will tell what sort of impact that will be.
Progress creates new jobs
New technologies can also create more jobs. The sign of any sort of lively and developing economy is one that has got a healthy job market. And as new technology gets developed, more jobs are actually produced. Think about as recent as 50 years ago, when the IT field was not even a thing that existed at all. But nowadays, thanks to the widespread use of computer systems, there is a very high demand for information technology workers. And this is actually a very high-paying and in-demand job.
It increases productivity
As more new technology is developed, it actually also further increases the productivity of people. For example, new developments in factory technologies will mean that a manufacturer can produce more goods at less of the usual cost. And this enables them to further grow their income and productivity, by selling even more of their goods throughout the world. And that sort of technological development has got a trickle effect throughout the rest of society as well, as it will also improve the productivity and quality of life of everyone else.
The economies of many countries, throughout history, have actually been affected by the technological progress the most. In fact, in the contemporary world, there is even a new kind of economy, the information or data economy. Data about consumers and information about the market, in general, is definitely a new kind of market. And this new development in information would not even be possible without the development of current technologies such as computers or the internet. So you can definitely say that the economy, in its current state, would not even be possible without the aid of technology. And the conclusive answer to the age-old question, of whether or not technology can affect the economy, is definitely, yes!