In the modern world, technology is used to ease the work done in many industries. Consequently, companies have focused on adapting new technologies to improve their productivity and also reduce time wastage and amount spent on human labor. The changes in technology can thus be seen to be of significance to the business environment. In this paper, the improvements on technology are analyzed to identify any contradictions. The paper investigates the question "are technology improvements contractionary" to determine the different improvements that come with modern technology and considered to be positive or detrimental to economic growth and inflation. In the analysis, different articles are used to review of Basus article on technology improvements being contradictory.
Summary and Appraisal
Technology advances in the world have played a significant role in promoting the growth of businesses in the world. Technology and business are closely related, and so is the impact on companies and institutions. The article looks at the measure of technology on returns and competition. A measure of technology through the returns experienced by a corporation is important since it is meant to reduce the amount of input. The improvements can be seen to improve on significant aspects such as communication, transportation and also the food industry.
The article by Vitali (2013) et al., appraises the article in subject on this factor. According to this article, technology improvements are seen to have an effect on an economy in numerous ways. In this article, the author looks at technology and innovations role in the social and economic developments in an economy (Vitali et al., 2013). It can thus be seen to be in line with the article Are Technology Improvements Contractionary? as it provides information that answers the question directly. Readers are able to understand how technology improvements contribute positively to economic growth and also sustainability of a brand in the market. For example, the growth of Apple highly depended on technology improvements. Also, the growth of Apple, Inc has seen the economy of United States get a boost due to revenues earned through taxation and also employment opportunities created.
Basu (2004) looks at aggregate technology in an industry estimation by the use of the regression model. While identifying a measure of technology, it is very important to look at the technology-push effect. The regression model helps create a direct comparison between two business variables. Technology is used in this case as the dependent variable and any other factors such as productivity as the independent variable. The factors used as the independent variables include capital, number of employees, and output among others. The regression model is important as it validates the relationship between two variables.
The methodology used as a measure of technology is important as it also helps identify the relationship between technology and the variable factors in any business. Gallo (2015) supports the use of regression analysis due to its simplicity and ability to generate accurate data in determining the input factors. In this case, the article has used the regression model to understand how the input factors lead to production in the long run. The regression constrain is important in measuring the productivity of a business due to technology improvements. The article on regression thus supports the analysis on technology improvements being contractionary.
Data & Findings
The data used sort to measure the aggregate of technology and the change created on the development of a company. The data used was good as it helps boost the amount of change that occurs in a company. The data, in this case, was collected from Dale Jorgenson and is considered important in determining the amount of change in output in the long run. In regression, it's quite important to ensure that data used can be able to create a measure of the variable and independent factors of production. The research, how data is collected will determine the results which are considered to be important in the long run.
According to the article, the data was quite significant as a measure of the variable factors of production thus catering for the regression model. The data used in the article is considered significant as it will help identify the right patterns of developments brought about by technology. The data is used in analysis and creating a better way of understanding customer information. Data on technology and its effects on the business world is considered important and significant in the article. The articles data analysis has proven to be of importance to the methodology used in the regression model.
Technology can be realized to have an influence on pricing and due to productivity. As companies grow their customer base in the market, it becomes important for every person to reduce the amount of time wasted on labor and machinery by embracing the new technology. Adaptation to the modern technology helps improve the quality of services delivered to customers. Additionally, it also helps in cutting down expenses that can be experienced in the long run.
In the modern world, companies, businesses, governmental organizations such as central bank and also NGOs largely depend on modern technology for operation and estimation of their survival in the market. Technology has brought improvements in the world with major effects seen in the areas of communication, data, and energy among others. Improvements seen have a direct effect on productivity and economic growth. The effects also are seen to reduce the levels of low productivity and improve on economic growth.
The article has been able to show the improvements in productivity due to technology changes in the world. The article has thus provided a positive change brought by technology on companies and further on individuals. Tassey (2017) looks at the direct effects brought about by technology improvements on economic growth. The article has put the focus on understanding the levels of technology and how it has brought an impact to the business world and the economy. Businesses in the world have developed significantly due to the changes that have occurred within about 20 years. The major changes in technology were experienced during the 20th century.
According to Basu (2004), over the past 50 years technology has seen major improvements which have had a direct impact on economies. The statement is considered true since considerable changes have been seen over the past 50 years in accessibility of data, communication, transport, and manufacturing of products and services (Clichici, Moagar-Poladian, & DragoI, 2017). Accessibility of data is currently considered as one of the most important aspects in technological growth. Once data can be accessed easily, it becomes easy for companies to develop their client base and understand the consumer patterns. The article has thus provided important information on how businesses and companies can increase their revenues which in turn increase the government revenues and contribute to positive economic development.
The article has also contributed positively towards understanding how technology has led to economic growth in the following ways. The article has highlighted the aspects of technology that help improve productivity and also development in the long run. According Clichici, Moagar-Poladian, & DragoI, 2017), technology is considered as a factor that drives towards positive effects of inflation in an economy. With technology, it becomes easy to control the amount of money in circulation which means that the economy will be able to hold a little cash at hand as possible. With little liquid cash in circulation, it becomes easier for economies to avoid the issue of inflation and high-interest rates. Information provided is thus considered to provide a positive gain on the economy as supported by the article titled The Tech-Based Economic Development and the Future of Jobs.
As supported by the article, it is important to understand that technology is contractionary as it plays a critical role towards promoting the monetary policies and the fiscal policies. Technology has played a role in determining the real output levels and the employment levels. In the light of this, it can be noted that companies experiencing changes in technology realize a drop-in expenditure and growth in revenues (Clichici, Moagar-Poladian, & DragoI, 2017). The main reason for these changes is increased use of machines and low usage of human power. Consequently, it can be noted that competition has also stiffened due to improved quality and improved productivity. Companies look to provide customers with better services and goods as compared to their competitors.
The articles contribution has mainly focused on economic growth and sustainability. It is an important aspect to look at when it comes to understanding how technology is a positive factor for economic growth. The contribution by the article is considered important because it also looks at how technology increases productivity which is connected to higher sales, increased revenues, low cost of production, increased time saving and also a growing economy. The contribution of the article is thus positive and can be seen as important in all aspects.
The article is supported by Acs, FitzRoy, & Smith (2012) who look at how technology and its improvements help when it comes to research and development. According to the article, R&D contributes to innovations which further contribute to better technologies for companies. The article contributes to the topic of discussion providing supporting evidence. Cases of technology and economic growth supported include factors such as employment growth and competition. For example, due to the invention of cell phones, it has become necessary for every person in the society to own one the cell phone that they will use to communicate to their friends. The growing demand for phones thus promoted companies such as Samsung, Apple, and Huawei to look for ways to develop phones that can serve individuals at their levels. Such an invention promoted increased competition in the market, the ability of the government to earn from taxes and also increased employment levels.
The article further shows that technology has positive role towards economic growth through reduction of inflation. In most cases, governments look at the available monetary and fiscal policies to help the economy recover from situations of an economic meltdown. With the improving technology, governments can combine the factors of production to come up with the desired output level that enables every individual to benefit at their level. The improvements are thus important and directly affecting the government.
On the other hand, the article also shows that economic growth largely depends on the investments that exist in a country. According to many companies, investments are more suitable in areas where technology has penetrated and allowed for development. For example, in America, all companies are focused on that market due to the modern technology and the need for every citizen to adapt to the current trends. Every citizen has put focus on the current trends which have prompted industries and companies to adapt. The change is good for the economy since it means there is more money in circulation and also increased employment levels (Hagedorn et al., 2013).
The modern technology has also been seen to disrupt the financial sector. The existence of digital currencies and the cashless forms of making payments have increased the security of paper money. Individuals can store...
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