Self-driving cars. Genetic engineering. Virtual Reality. An industrial revolution is taking place in front of our eyes and it’s moving exceptionally fast. What does this mean for the economy?
As we implement smart technologies into our workplaces, employment, productivity, as well as economic growth will be affected. Access to education and the internet can improve the lives of billions of people, and through an increasingly powerful digital world, social media, and innovation, a better quality of life can become a reality. Artificial intelligence can introduce a whole new level of productivity and elevate our daily lives in many ways. As we’ve seen during the past revolutions, there will be exponential changes to the way we exist and work. Innovation can also be a disruptive force, displacing millions of jobs and amplifying inequality in our society.
Innovation allows for increased productivity and economic growth, however it leaves many people unemployed and paves the way for more inequality. In the 18th and 19th centuries, the government has had a “laissez-faire” approach in terms of policy implementations to address this issue. However, in the late 20th century, a more hands-on approach was taken, limiting many of the liberties that private companies could take. My question is: What impact will the 21st century industrial revolution have on the economy, and what types of government policies can be implemented to prepare the economy and workforce for automation and new technology, while also minimizing inequality and unemployment?
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