105%20Chapter%202 - Chapter 2: Winners and Losers * There...

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* There is no denying that technological advancements have been the single greatest cause of economic growth; this is largely because tech has boosted the production of goods and services * Traditional Factors of Production 1) LAND – I increase production by draining a swamp and culti- vating more land. 2) LABOR – I could hire two additional laborers to help me. 3) CAPITAL – I could purchase several tractors to help me. Traditionally, any increase in production is taken to be the result of an increase in one of these factors or forces. * BUT … something is missing! The major source of economic growth was A “residual” factor of overwhelming importance. 1) Technological advances 2) Organizational development 3) Improved worker skills 4) Economies of Scale. (Increasing production with a minimum of effort) Still… #’s 2 and 3 are part of # 1, so technological change is the major source of economic advance. * Technological Advances have not been without costs. There is a myth that tech can work wonders without altering existing social arrangements. -- Tech can be used for good or evil = Dynamite can be used for con- struction or destruction; a plane can be used to transport people or plow into buildings; a screwdriver can be used as a tool or weapon. -- But … TECH MODIFIES AND DESTROYS SOCIAL ROLES, RELATIONSHIPS AND VALUES -- Even benign tech can cause disruptions by altering existing social structures and relationships. A few changes are massive. -- Tech leads to the destruction of obsolete firms or businesses (pony express) -- Tech also leads to the creation of whole new industries (i.e. micro- computer = software publishers and producers of peripheral equip- ment BUT… Tech caused the failure of the vacuum tube and the transistor industry. -- There are often fears associated with a new industry. Railroads were feared to ruin society. -- Technological Changes (major or minor):
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This note was uploaded on 01/24/2011 for the course HSS 105 taught by Professor Anthonyprincipe during the Spring '09 term at Tri - County Technical College.

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105%20Chapter%202 - Chapter 2: Winners and Losers * There...

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