Technology and society: final examination essay
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Course name: Soc 1235
Question 1
Technological advancement has been a process. The first development was the industrial revolution, which was brought about by mechanical engineering, chemistry, and other fields. Steam engines were developed, overcoming muscle power limitations since massive amounts of useful energy were generated, leading to factories’ development, mass transportation, and modern life. The second phase was the machine age characterized by digital advances in mental power. This technological advancement led to the division of labor and doing away with some jobs altogether. For example, in the past, arithmetic and tabulations that were being done by humans are now done by machines because they are cheaper, faster, and have no room for errors (Erik and Andrew, 2014). Many people lost jobs as their skill sets became obsolete as machines were replacing them. For example, lamplighters’ jobs in New York City in 1900 were made obsolete by introducing electricity. Only one person was required to switch on the street light from a central place. As advancement continued, the process was fully automated, and those jobs diminished. Lamps always needed personal attention, but with electricity, it was a skill that was no longer viable. Artisan jobs were done away due to mechanization. Adults lost jobs leading to a large pool of child laborers, especially in the textile industry in the early 1830s. Loss of such jobs led to social implications such as loss of incomes, deterioration of nutrition and health, migration to the urban areas leading to congestion, and crop up low-income settlements. Loss of employment led to low living standards and suffering in children (Carl, 2019). Due to automation, many men in their prime age were denied opportunity; public service diminished, increased suicide and liver-related diseases due to alcoholism, and increased property and violent crimes. Health deteriorated (Carl, 2019).
Information and communication technology does not only have a negative impact but positive also. Some technologies created an enabling environment for already existing jobs. For example, the development of statistical packages such as Stata and Matlab did not do away with data analyst jobs but have aided in proficiency and precision. The development of machines such as typewriters paved the way for clerical positions. Technology created new jobs such as robotic engineers and power looms, audiovisual specialists, software engineers, and database administrators. Technology also led to a demand for employees with high cognitive skills (Carl, 2019).
The past effects of information and computer technology on employment are likely to be the same in the future. Automation in America is diminishing opportunities for middle-class citizens. This will push the citizens to take lower-paying jobs or drop out of the job market altogether. For example, elevators that were run by humans run automatically today. Google’s introduction of autonomous cars is a sure way of job loss even though skepticism may arise to new jobs such as chauffeur drivers. Rise of robotics in assembly lines and warehouses (Erik and Andrew, 2014). The continued increase in crime, suicides, poor nutrition, and poor health is likely to be experienced since not much improvement has been observed while embracing technology. It is a system created by geniuses to be operated by geniuses (Carl, 2019).
From the earlier effects of technological innovation, we can learn that when technological advancement replaces labor, there will be hostility since most employees in their prime age lose their source of livelihood. Also, social disorganization will most likely follow. Cases like suicides, malnutrition, alcoholism, and crime incidences rise since most are unemployed and survive. In contrast, when technological progress is of the enabling type, personal growth results from empowerment and new training to transfer technology. In this case, no social disruption occurs.
ICT results in changes in the job description, reduction of human physical effort applied in the employment scene, the introduction of new jobs, social disruption, or loss of jobs. Proactive changes result in less social disruption while encouraging technological innovation in the workplace.
Question 2
According to Schumpeter, the comparative advantage principle is mostly used by the west to frame trade policy. Comparative policy argues that countries are better off if they practice exclusively in what they make best and trade. For example, suppose Canada produces wheat effectively, and Germany manufactures tools efficiently. In that case, both countries will be better off trading goods produced in each country for a mutually beneficial trade relationship. Besides, failure to enforce antitrust law is considered working against the country’s interests, and that market should set the interest rates too. Therefore it can be argued that the comparative principle is not a useful guide to economic policy (Schumpeter, n.d).
A country like Japan violated the comparative principle, and has a long history of protectionism, picks industrial sectors to advance, keeps low-interest rates. According to Schumpeter, Japan has done all these things and has served the interest of the country. If industries are subjected to less international competition, there would be a likelihood of generating higher incomes, positively impacting technology transfer, creating skilled labor, and establishing research institutions. Therefore, in contrast to claims by the comparative advantage principle, countries are better positioned to shift focus into the high technology industry (Schumpeter, n.d).
For a country to utilize the principle, the government must intervene by protecting domestic producers, subsidizing exports, and keeping interest rates low to encourage investments. Strengthening heavy industry in Japan provided a firm ground for further growth by targeting government sourcing at domestic producers, using product standardization, and regulating foreign involvement in Japanese industries, encouraging Japanese industries to work with each other. As observed, Japan did not apply to antitrust law. All these measures attempt to shift cost curves, which reduces cost and margins or prices and hence comparative advantage over the competing countries. Therefore, to effectively utilize and apply comparative advantage, a government must apply protectionism and encourage technology transfer across the industries.
According to Schumpeter (n.d.), innovation involves costs and ideas. The expenses include the inventor time and capital costs. For innovation to occur, an incentive is required. Competitive markets provide this incentive. If the invention spreads quickly, the innovator may not realize profits and may back down to reduce the development costs. Therefore, intellectual property rights are required to ensure that returns are large enough to cover expenses. Firms can fund innovation from their profits by pooling their resources to fund research and development. Venture capitalists may provide the resources also. When there is competition, innovation is more, leading to reduced costs and lower prices, as seen in Germany’s organic chemical production and the textile industry in Britain. It is also observed that innovation is necessary where there is a monopoly. Such innovation brings quality and discontinuous change and results in new products or techniques, forcing the old organizations out of business and disturbing the business environment. The exploitation of economies of scale in research requires monopolies to provide resources necessary for research.
Research indicates that a country should first practice protectionism of the available industries’ available industries to utilize the comparative advantage principle (Schumpeter, n.d). The industries should be protected against foreign influence. Secondly, innovative incentives should be availed in the industry for organizations to remain competitive. Third, technological advancement and transfer in the local industries are encouraged. Spillover of technologies results, leading to lower production costs and low prices for consumers, placing a comparative advantage—implementing low interests encouraging industrial growth. Industrial growth and technology spillover lead to establishing research and development infrastructure, including schools and higher learning institutions, thus churning more personnel with new technologies skills. As such, the comparative policy works for the country, not against it.
In summary, the Comparative principle is applicable in aligning production and supply in, presumably, the most profitable trade arrangement possible. The principle is necessary for regulating technology innovation to protect industries, avert overproduction, or monopoly, which guarantees trade opportunities among countries.
Question 3
According to Marc Levinson, distributional concerns affect the evolution of production organization. For example, back in 1956, one could not find Brazilian shoes or Mexican vacuum cleaners in Kansas City, nor did French people get their apparel stitched in turkey or Vietnam. Japanese were not consuming beef from Wyoming since shipping costs were too expensive, that it was not profitable to ship goods across the country (Marc, 2006).
Some factors facilitate productivity, therefore, enhancing changes to production organization—cheaper logistics. The emergence of containers has reduced the cost of transporting goods from place to place complications and minimal costs. Containers paved the way for a new economy as dormant harbors such as England came to live. Secondly, the low cost of production. According to Marc, many New York businesses left their costly establishments to move to cheaper places near their suppliers since shipping costs were less expensive. Third, the availability of raw materials. It is observed that huge industrial complexes developed in cities such as Los Angeles and Hong Kong. This was made possible because the shipping cost of raw materials to the factories and sending out finished products had dropped. The fourth factor is the new economic demographics or environment. Organizations that were only producing goods for domestic consumption were exposed to a new economic front. They were challenged to expand their businesses internationally since logistic prices were not restrictive. Also, competing was not a choice since the global market was coming to them. For example, Malaysian clothing came to New York at a lower price than those produced in New York (Marc, 2006).
The fifth is the ability to adapt to changes. Companies that had factories in different countries had to transform themselves into multinationals by integrating factories and choosing a cheaper way to produce their product. The companies would then shift to more affordable places if need be. The sixth factor is the consumer target. A product is created with a target of specific consumers. Consumers now have a variety of choices. For instance, the US imported four times types of goods in 2002 as compared to 1972. The competition from the imported goods increased trade lowering the price of goods, leading to improved living standards since most imported consumer goods are affordable. The seventh factor is labor. International forces have kept trade under control. Employees worldwide have formed trade unions and can negotiate better terms continuously and enjoy protection from the government. Technology is the eighth factor. Beautiful chaoses witnessed in harbors are mostly controlled by computers. The emergence of cranes has made the work easier for employees and organizations. Cranes are operated with a remote control instead of being high up on air. The ships are computerized way before they dock, and workers know which containers to offload first without destabilizing the ship. It is also possible to transport perishable goods since there are refrigerated containers (Marc, 2006).
To conclude, new technological innovations take time to spread. For instance, the incandescent bulb was invented in 1879, and only three percent of homes were connected to electricity. This example shows that even though the technology is necessary, it is not essential. Also, there is a relationship between transport and the economic location of the business. When logistical costs are high, companies prefer being near the customers, even when the production implications are high. When transport costs decline, industries relocate domestically and then internationally to cut other costs (Marc, 2006). Several factors, such as cheap labor, adaptation to change, low cost of production, technology, and others facilitate productivity and enhance organizations’ production changes. Marc argues that technology is the least important since it is absorbed when other factors are reoccupied, while transport cost is the most important even though David Ricardo did not consider it during his analysis (Marc, 2006).
Therefore, distributional concerns affect the evolution of production organization. Productivity-enhancing changes to production organizations are enhanced by the low production cost, cheap labor, technology, and adaptation to change.