Ricardo’s Pivot and the Centrality of Technological Choices
Conventional wisdom suggests that technological changes increase productivity, leading to higher wages and more economic opportunities in the long run. However, Acemoglu and Johnson argue that this view overlooks workers' struggles to secure a fair share of the prosperity generated by new machinery.
➡️Historical Insights from the Industrial Revolution: Industrial Revolution in Britain provides insights into the current relationship between AI-induced productivity and employment.
☑️ Spinning Jenny: It reduced yarn costs, increased productivity, and boosted demand for handloom weavers.
☑️ Power loom: It led to labour substitution and a significant drop in the real wages of artisans between 1806 and 1820.
☑️ Railways: Created new jobs in manufacturing, design, repair, maintenance, and clerical tasks,
These developments highlight the varied impacts of different technologies.
➡️ Economic vs. Political Factors: Economic factors alone cannot explain the impact of automation on wages. The balance of power between labour and capital (political economy) plays a crucial role. For example, E.P. Thompson argued that the shift to factory work reduced workers' autonomy, and without policy support or bargaining power, it led to deteriorating wages and working conditions.
➡️ Use of Technology: The impact of AI and automation depends on how technology is used—whether for automation, surveillance, and control, or for informed decision-making, problem-solving, and augmentation.
➡️ Job Creation vs. Job Hindrance: AI and automation have the potential to transform jobs rather than destroy them. Automation can benefit labour by increasing the marginal productivity of labour or creating new tasks and industries, as seen with the Spinning Jenny and railways.
➡️ Centrality of Technological Choices: The direction of technology deployment is critical since It can either reduce the marginal productivity of labour or increase productivity in complementary sectors, creating new opportunities. The concept of 'centrality of technological choices' emphasizes that the benefits or harms of technology depend significantly on how it is implemented and managed.
You can use these insights when you are writing Essay on following Topics:
☑️ Artificial Intelligence: Boon or Bane
☑️ Industrial Revolution 4.0
☑️ Impact of Technology on Workforce etc.
Join @essayprepcareer for more such content !!
#essay #upscmains #mains2024 #AI
Conventional wisdom suggests that technological changes increase productivity, leading to higher wages and more economic opportunities in the long run. However, Acemoglu and Johnson argue that this view overlooks workers' struggles to secure a fair share of the prosperity generated by new machinery.
➡️Historical Insights from the Industrial Revolution: Industrial Revolution in Britain provides insights into the current relationship between AI-induced productivity and employment.
☑️ Spinning Jenny: It reduced yarn costs, increased productivity, and boosted demand for handloom weavers.
☑️ Power loom: It led to labour substitution and a significant drop in the real wages of artisans between 1806 and 1820.
☑️ Railways: Created new jobs in manufacturing, design, repair, maintenance, and clerical tasks,
These developments highlight the varied impacts of different technologies.
➡️ Economic vs. Political Factors: Economic factors alone cannot explain the impact of automation on wages. The balance of power between labour and capital (political economy) plays a crucial role. For example, E.P. Thompson argued that the shift to factory work reduced workers' autonomy, and without policy support or bargaining power, it led to deteriorating wages and working conditions.
➡️ Use of Technology: The impact of AI and automation depends on how technology is used—whether for automation, surveillance, and control, or for informed decision-making, problem-solving, and augmentation.
➡️ Job Creation vs. Job Hindrance: AI and automation have the potential to transform jobs rather than destroy them. Automation can benefit labour by increasing the marginal productivity of labour or creating new tasks and industries, as seen with the Spinning Jenny and railways.
➡️ Centrality of Technological Choices: The direction of technology deployment is critical since It can either reduce the marginal productivity of labour or increase productivity in complementary sectors, creating new opportunities. The concept of 'centrality of technological choices' emphasizes that the benefits or harms of technology depend significantly on how it is implemented and managed.
You can use these insights when you are writing Essay on following Topics:
☑️ Artificial Intelligence: Boon or Bane
☑️ Industrial Revolution 4.0
☑️ Impact of Technology on Workforce etc.
Join @essayprepcareer for more such content !!
#essay #upscmains #mains2024 #AI