Computer technology & employment growth

Mind Map by merelvgerven, updated more than 1 year ago
Created by merelvgerven about 6 years ago


Mind map of the article by Brynjolfsson & McAfee about how computing technology destroys the growth in employment

Resource summary

Computer technology & employment growth
  1. Areas of technological change
    1. Financial services
      1. Clerical
        1. Medicine
          1. Retail
            1. Manufacturing
              1. Law
                1. Education
                2. Long term impact of technology
                  1. According to history, no long-term trend of eliminating jobs for people
                    1. Question? Are computing technologies different and so do create a involuntary long-term unemployment?
                    2. Future: Dismal prospects for many types of jobs
                    3. Short term impact of technology
                      1. Consequences
                        1. Elimination of many types of jobs
                          1. Rapid technological change has been destroying jobs faster than creating them
                          2. Reduce in demand workers
                            1. Median income fails to rise even as GDP soars
                            2. Advantages
                              1. Higher productivity
                                1. Entering new market more quickly
                                2. Wealthier society
                                  1. jobs are made easier, safer, faster & more productive
                                3. History in technology and employment growth
                                  1. "Just a shock; workers need to adjust skills and entrepreneurs create new opportunities based on new technologies"
                                    1. Jobs rebound
                                    2. No historical patterns show shifts leading to a net decrease in jobs
                                    3. NO ONE KNOWS; arguments against technology being the cause of unemployment
                                      1. Labor economists: "Data far from conclusive"
                                        1. "Are new technologies responsible for the lack of job growth"
                                          1. "Difficult to extricate the effects from technology from other macroeconomic effects"
                                            1. "Labor hours are a crucial indication for growth and wealth"
                                              1. Recent technological change can be different than anything seen before
                                              2. Watson: "Automization also used to make human workers more efficient, not to eliminate them"
                                                1. David Autor: "Sluggish growth in employment are one big puzzle, but not a lot of evidence is linked to computers"
                                                  1. "Jobs can change a lot without there being huge changes in employment rates"
                                                  2. Leonard: "On the one hand progress, on the other hand same old problems. The big challenge is uncertainty
                                                    1. "People are still needed to deal with changes in the environment and reacting to unexpected events"
                                                  3. Current situation according to Brynjolfsson & McAfee
                                                    1. GAP: Economic growth and productivity no longer parallel to job creation due to technology
                                                      1. PARADOX: productivity at record levels, innovation never been faster, but falling median income and fewer jobs
                                                        1. People are falling behind, because technology rising too fast and our skills and organizations aren't keeping up
                                                        2. POLARIZATION of the workforce and the HOLLOWING OUT of the middle class
                                                          1. AUTONOMY ECONOMY (internet, data): digital processes talking to other digital processes and creating new ones
                                                            1. ECONOMIC WINNER & LOSERS: rapid acceleration of technological progress has greatly widened the gap between economic winners and losers
                                                              1. Income inequalities
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