Better Technology = Efficiency = A Better Life

We somehow inherently know that we are better off when the farmer uses tractors rather than people to plow his 150 acres. We know this in spite of the fact that one tractor replaces hundreds of employees. Somehow we know that what was introduced by the tractor is efficiency which allows for the higher standards of living we now enjoy in modern society.

If our thinking is static or narrow we may not see beyond the unemployed farm workers. But if our thinking is dynamic we realize that the tractor didn’t just pop out of thin air, nor did the steel from which it was made, nor the gas in it’s tank, and so on.  All of these required people, indeed employees.

So come on. You can actually enjoy that .25¢ banana, that somehow found its way from somewhere in Central America to your air-conditioned grocer, and that you lugged home in the comfort to your air-conditioned car, and are now eating in your air-conditioned house as you gaze at your 92 inch plasma, without worrying too much about unemployed wagon wheel makers.



Filed under Economics

5 responses to “Better Technology = Efficiency = A Better Life

  1. What happens if technological development reaches a point in the future when most (if not all tasks) have been automated). Imagine a world in which not just automated servants do your housework but white collar jobs have been automated. How would society/the market distribute resources? This seems far fetched but at the start of the 20th century many people still believed that man would never reach the moon.

    • While I think technology is always a double edged sword, I don’t think we need worry about the scenario that you paint. The future holds all sorts of unknowns, some are worth fearing… some are not. But for arguments sake, assuming your scenario happens, I would think that man’s life would be better, just as yours is markedly better due to technology that was unfathomable not long ago.

      You have given me some thoughts for a new post. Thanks

  2. Informative and entertaining in her presentation! Simple & direct. What a concept of teaching!!!

  3. To added to the wonderful lesson, we can also make the observation that with increase of technology also add more higher end jobs such as engineer, research and development department and Quality engineer

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