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As was the case with earlier infrastructural technologies, heavy investments in IT have led to what economists call "capital deepening" within companies--the replacement of labor with equipment. Simply put, computers have taken on the work that used to be done by people. When economic growth is strong--when output rises faster than productivity--that kind of trade-off pays off not just for individual companies but for the whole economy and hence the whole society. The commercial sector becomes steadily more efficient, displaced workers rapidly move into new jobs, and general living standards rise.
But if productivity growth races ahead of economic growth, a very different and altogether less attractive economic dynamic may play out. The stock of jobs may begin to decline, unemployment may drift upward, the supply of goods may outstrip demand, prices may drop, and the divide between the wealthy and the poor may grow wider and deeper. We have, it's worth noting, seen signs of all these phenomena in the recent history of the US economy. It would be rash to jump to the conclusion that strong productivity gains from IT investment will end up doing harm as well as good--the resiliency of the American economy is hard to overstate--but it would also be rash to dismiss the possibility out of hand.
If, in fact, we look back to the second half of the nineteenth century, we find a troubling precedent. In the 1870's, the world was also emerging from a technology-inspired spending spree. The rapid expansion of rail, shipping, and telegraph lines opened the door to global free trade and inspired massive capital investment. The resulting combination of rapidly increasing production, surging productivity, fierce competition, and widespread industrial overcapacity set the stage for nearly three solid decades of deflation, despite the continued expansion of the world economy. In Britain, the dominant economic power of the time, the overall level of prices dropped a staggering 40 percent. In the United States, prices for most products decreased steadily from 1867 through 1897.
The prophecy of the Mechanics Magazine writer--"greater will be the cheapness of everything"--came to pass, though with different and more complex effects than he had imagined. Profits fell along with prices, and businesses suffered. As economic malaise spread, the belief in unbridled commercial opportunity that had taken hold in the middle years of the century died away. Workers lost their jobs, farmers and laborers rebelled, and countries began to rebuild barriers to trade. As the historian DS Landes put it, "Optimism about a future of indefinite progress gave way to uncertainty and a sense of agony."
originally posted by: MystikMushroom
And I've also noticed not ONE teenager working at Wendy's or Taco Bell in the last 2-3 years. Where are the teenagers working these days?
originally posted by: MystikMushroom
And I've also noticed not ONE teenager working at Wendy's or Taco Bell in the last 2-3 years. Where are the teenagers working these days?
originally posted by: AlaskanDad
a reply to: Mugly
I wonder what it was about my last post that hit home?
Might it have been the comment on the Boss being an @$$?
Or may it have been the fact that your company pays to low of wages to keep workers?
Then again it could be that the crappy working conditions, I mean who would want to be exposed to lead particles?
As for automation; rest assured it just keeps getting better as it advances!
Have a great day, dude!
originally posted by: Skywatcher2011
originally posted by: MystikMushroom
And I've also noticed not ONE teenager working at Wendy's or Taco Bell in the last 2-3 years. Where are the teenagers working these days?
They are racking huge student loan debts for which when they graduate...maybe find themselves working as management as fast food restaurants once they grad and can't get a career for their chosen studies....just be patient.
originally posted by: AlaskanDad
a reply to: Mugly
I wonder what it was about my last post that hit home?
Might it have been the comment on the Boss being an @$$?
Or may it have been the fact that your company pays to low of wages to keep workers?
Then again it could be that the crappy working conditions, I mean who would want to be exposed to lead particles?
As for automation; rest assured it just keeps getting better as it advances!
Have a great day, dude!
i think a lot of guys would be out the door in a second if they could make 15 flipping burgers.
all they do is bitch. all the time. about everything.
if they are not bitching cause it is hot then they are bitching at the hours. then they bitch cause this company is strict on cell phones. they cant check their facebook or shoot a text. then they bitch cause they have to walk across the street to smoke and can only do that 2 times in a day.
pretty sure most fast food joints dont have it locked down like that.
if they could make 15 and smoke a bunch of times and check their phone all day then yeah, i think they would be out the door.
Wendy’s To Switch To Self Ordering And Automation To Avoid $15/hr Wage hike