Sunday, May 25, 2014

The New Economy, Recap

Thursday, May 29, 2014, 10am to 11:30 in the Meeting Room (behind the fireplace)

This month we examined the driving force of the new economy, technology. There is little doubt that we are in a second industrial revolution and should see a sharp rise in productivity. What is in doubt is if employment is still coupled to productivity. In our discussion about Automation we have seen that while productivity has recovered from the Great Recession, jobs have not. As technology advances, even more jobs will be threaten.

The new technology has enabled individuals to make free information and services available on the Internet. While the quality of our lives have improved from theses acts of Altruism, none of these free goods add to the GDP and have displaced many traditional jobs.

The new technology has also spawned new services based on Collaboration between individuals. More people can share the use of more goods instead of owning them outright. Since people like to share and ownership can be a hassle, the quality of life can actually improve by spending less. But the decrease in aggregate demand can have a negative impact on the current economy.

Finally, we examined how technology has supercharged the Maker Movement, leading to the explosion of small businesses. This may actually be how new technology will increase employment so we can actually enjoy the fruits of technology.

In last week's meeting on the Makers, I focused on how technology was empowering individuals, but did not show how it will improve the overall economy. The maker movement in better explained by Chris Andersen in his book, Makers: The New Industrial Revolution. Anderson has given a talk about his book at Google, HERE.

------------------- Update 5/28/14 --------------

I found a better talk by Chris Anderson about the Makers given in the UK, HERE. It covers the same material as his Google talk, but he explains more since his audience is less tech oriented than at Google.

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