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Location: Unemployment, Growth, and the Future
Discussion: Technological Growth
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jlau21 |
Technological Growth
Aug 30 2007, 9:33 AM EDT
I found alex's comment pretty interesting. We all know that physical labor in China is extremely cheap compared to other parts of the world, which is why so many big companies have their products made here. But what will happen when technological innovations are discovered and machines become cheaper and more efficient than human labor? If this were the case, then the production possiblities curve would expand, yet employment would decrease. This is a little confusing though, because when a country is producing at its full potential, shouldn't there be no unemployment? I guess technology plays both a positive and negative role in the economy.
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