The Affects of Technology on the U.S. Economy - Essay Example

Topic:  The affects of technology on the U.S. Economy The innovation of technology has affected economy of every country and U.S. being superpower is largely impacted by the introduction of new technologies. The economy and society of U.S. has been largely influenced by the different innovation in technological field. There is wide recognition that science and technology are fundamental to the economic growth, and the U.S. economy is turning in an excellent performance at the macro level – solid growth and low inflation.

However, the introduction of technology has played a major role in the widening the income gaps as technological advances leads to higher returns to education and experienced. Every sector of the economy was able to increase their productivity and decrease their cost due to the development in technology. According to (National ,1999,pg.17)“The information technology including semi conductor, computers, software, communication equipments and information technology services have led to success to U.S. economy”.

The United States has been successful in initiating and exploiting technological innovation to stimulate their economy. As per (Microsoft,1999)“The technology sector has done a magnificent job creating new opportunities and helping build a productive American economy”. The introduction of computers has completely changed the facade o f service sector of America. The introduction of computer and advancement in telecommunication industry has changed the business environment and industrial field of America.

The employers in industries in 21st century intensively used computer technology and this helped in increasing the productivity of the companies. For the very same reason, the cost of the products became reasonable and led to the growth of the quality of life o people The computerization has also led to the creation of large number of employment in U.S. economy. America is the most technologically powerful nation and this has led to a rapid advancement in the industrial sector of the country.

The sophistication in railroads have been able to achieve cost reduction in transportation system. The technology has changed the transportation, health, education, energy and agriculture. The growth of American economy largely depends on the growth of high technology industries and related services. In his book( Rafinejad, 2007,pg.45)writes that “Starting in 1996, the U.S. productivity growth has exploded to 2.5% per year, up from 1.4% per year between 1975 and 1995”.Also emergence of high tech companies has created twice as many jobs since 1990s and paid salary also increased in double.

Agriculture sector also increased the crop yields as the necessary of spraying herbicide and insecticides reduced with the invention of new technology. Pharmaceutical and bio technologies have created more cures and treatments that helped people live longer and healthy life. Advance in health care sector has increased the life expectancy in the United States. Technology has improved the social environment by increasing energy efficiency and fuel efficiency. With the invention of computers, the companies and organizations moved on to have paperless offices.

Even the telecommunication field has enhanced the workability of the entire U.S. economy. In his article (Gary,1999,pg.23-29)mentions that “The information technology business is a bright spot in the world wide economic picture and U.S. computer companies are carrying the torch”. Computer and invention of cell phones has changed the face of American economy beyond expression. High technology today has changed markets, products, services and marketing systems of America. New distribution channels are enabled by the internet, such as in the entertainment, news and music media which gave birth to LP recording disks, to CD/DVD to MP3 downloads.

High technology has globalized the transportation and communication and has changed the industrial infrastructure through application software .It has created new industrial products and internet services that have replaced traditional banking services and air travel businesses. As per(Congress of ,1990,pg.34)“Technological advances in information processing are changing the nature of the U.S. economy making it more complex and independent”. Information technology has increased the interdependence of many sectors creating a network link between consumer and producer.

In the website (Gordon,2002) writes that,“The post-1995 technological acceleration, particularly in information technology (IT) and accompanying revival of productivity growth, directly contributed both to faster output growth and to holding down the inflation rate”. After the year 2000, the advancement of technology in the manufacturing field has changed the micro economic image of America. The skilled workers and educated found numerous opportunity with the advancement in the technology in service sector.

With the invention of microchip, people were able to manipulate knowledge according to their will which lessened the effort and cost of industry and service sector. The progress in technology also brought about globalization and this widened the import and export opportunity for the U.S. economy. The labor market also expanded as people across the globe arrived in America to take up information technology related job which upgraded the financial status of the country. Annotated Bibliography Congress of United States.(1990). Energy use and the U.S. economy (p. 34). Washington D.C., MD: DIANE Publishing.

This source is compiled by the government of America and hence as credible information which can be trusted completely. The book is about the energy consumption and U.S. economy transition. Here the technological advancement and its effect on the international trade and energy use and how it shifted the economy of America is explained. This source has helped in explaining how the nature of U.S. economy has changed with technology development Gordon, R. J. (2002). Technology and Economic Performance in the American Economy. In CEPR. Retrieved September 15, 2011, from http://ideas.repec.org/p/nbr/nberwo/8771.

html This source is a website which explains about the technology and its impact on the economic performance of America. The author of this article has written numerous articles on the subject of economy. The author has explained about how technology has reduced inflation and upgraded all sectors of American economy. The article gives information about America after 1995, and how information technology made it a super advanced country. Gary, C. (1991, March 4). Beware the fruits of War tech. Computer World, 25(9), 23-29.

This source is a journal which explains about the war tactics and the advancement in the weapon technology of America. The writer is trying here to tell the readers that the U.S. should concentrate on other things rather than war. The journal explains about the invention of information technology and its effect on the U.S. economy. This source gives a viewpoint on the technical scenario of America during 1990s.This source gave knowledge on the technical evolution of America in a brief manner.

MicrosoftCorporation.(1999). Technology and Our Economy. In Microsoft. Retrieved September 15, 2011, from http://www.microsoft.com/issues/essays/1999/09-20tech.mspx This source is highly valuable and credible as it is presented by Microsoft Corporation which is the most famous company around the world. The source is focused on the internet innovation and its effect on the economy and personal efficiency as a whole. This website makes us understand the importance of internet in changing the face of economy of U.S. This source explains that how the business environment has changed with the help of internet.

National Research Council. (1999). Harnessing science and technology for America's economic future (p. 17). Washington D.C.: National Academy Press. This source has been significantly helpful in making me understand the subject of the essay more profoundly and I was able to extract much information from this book. The source is really credible as it is written by National Research Council , which is a government body. This source explains about the innovation in the technological field and has enhanced the informative value of the essay.

The book has also explained vividly about the importance of science and technology in the progress of U.S. economy Rafinejad, D. (2007). Innovation, product development and commercialization: case studies and key (p. 45). Florida: J.Ross Publishing. This book is written by Rafinejad and it is all about the innovation and commercial scenario of America which is relevant with the subject of the essay. The author is a person with doctorate and given an exceptional perspective about science and technology in this book.

He is also a consulting professor in engineering and is well versed with technical field. The book has given some statistical information on the economical development of U.S. which has proved to be very beneficial for the essay.