In the 21st century, technology has been at the forefront of advancements and innovations across the globe. It has led to creations of artificial intelligence, automated processes, and robots among many more. Despite all these merits, technology has dramatically played a role in the decline of the real value of the minimum wage and de-unionization. The main driving force towards the wage structure in the United States is technology. From the consensus done, it is evident that technology favors only the skilled workers, replaces the work that was previously done by the unskilled and increases the skill demand. This review, therefore, is a research proposal focusing on technological effects, and how it creates economic inequality in the United States.
As global poverty continues to decrease, another issue emerges. According to the world economic forum, technology contributes to economic inequality across the countries. This poses a serious threat that may result in increased polarization and increased political stability. It is evident that in the United States, technology has facilitated in decreasing poverty rates across the country. The mobile technology has contributed to financial inclusion through the creation of a stable financial structure and global markets which increases trade opportunities. However, on the side, it continues to create economic inequality; technology has replaced many blue collar jobs that used to pay well(Acemoglu, 2003). The skilled laborers working in the blue collar jobs have to switch to home healthcare jobs and retails, which typically pays low.
Technology has increased the gap between the rich and the poor in the United States. From the survey done, it is evident that the disparity in wealth distribution is continuing to increase over time. In northern California, the chasm between technology multi-billionaires and the general population is enormous. It is clear that around 31% of the people earn $16 and less per hour making the income payment to be as it was in 1995. This creates a conclusion that technology has contributed to increased inequality. The electronic companies are monopolistic in the market; this means that the people owning these companies are continuing to get wealthierwhile the middle class struggles with the high cost of living. The massive wealth generated by the use of technology is not shared by the world but by a few minorities.
According to the 2nd machine age, it is evident that the invasion of offices and homes with PCs has gathered momentum since the 1980s. While technology replaces jobs, it creates more forms of employment than it destroyed. However, the creation of intelligence automation has led to declined white collar jobs. From the various researches, the white collar jobs such as case file workers, loan officer insurance underwriters and bank tellers have decreased as a result of intelligence technology. In the banking sectors alone, a thousand of jobs are likely to be decimated via the use of artificial intelligence(Cruz, 2017). From the report ushered by the industrial revolution; by 2055, half of the world jobs could be automated. The simple question is, where are the people in these jobs position going to work?A lot of them may be left jobless in the future. Technology is, therefore, significantly contributing to economic inequality.
Previously, the manufacturing industries were using conventional methods of delivery such as the use of cars delivery. However, advanced technology has dramatically threatened the service industry. Amazon, for example, has introduced the use of automated drones to deliver their services. This may force the skilledpersonnel who carried these jobs to shift to other poor paying jobs(Acemoglu, 2003). In the transport industry, automated cars have replaced traditional taxi drivers. Technology is, therefore, slowly causing economicinequality in the United States.
Despite the many challenges associated with advanced technology such as economic inequality, technology is not bad. It has promoted economic development and improved the livelihood of individuals in the country. Although a lot of people in the motor engine innovation and industrial revolution feared to lose their jobs, alternative jobs were created by the revolution. The same case should apply to technology; more employment should be designed to absorb the less skilled individualsstruggling with little income.
The world economic forum outlines the United States as a country with the highest economic inequality across the world. Disparity creates bitterness among the public; they are the ones paying the taxes and working most hours all the times, yet they are the least payed. A lot of wealth goes to a few individuals who own tech companies. Increased economic inequality may cause social vices such as nonfunctional democracy because a few wealthy individuals dictate what should be done in a country. The increased advancements in technology are likely to lead to lower incomes and an increased unemployment rate in the United States. The government, therefore, needs to introduce intervention strategies that end economic inequality. Various academicians also need to intervene in minimizing the adverse effects of advanced technology in the United States, and in this way, economic inequality will be reduced.
Acemoglu, Daron. “Technology and inequality.” Technology and Inequality (2003).
Cruz, Elfren. “Technology Increases Income Inequality.”Philster.com (2017).
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