PROS AND CONS OF THE TECH-ECONOMY- Hilary Utuke (Tech And Media Entrepreneur)

Historically, countries that have taken advantage of technological advancement have improved their economy magnificently and created wealth and prestige for their citizens. In the case of Finland, a report showed that they are the most technologically based country in the world, hence, experiencing a tremendously transformed economy. Also, countries like Singapore, the USA, and Finland have experienced rapid growth in their ecosystem.

For clarity, the Tech-Economy refers to an economy driven by technology and innovation. This article will examine the Pros and Cons of an economy driven by technological advancement.

 PROS OF A TECHNOLOGY-DRIVEN ECONOMY

Daily, we witness technological advancements across the globe and experience positive and negative outcomes. The tech economy has become the most significant source of recent development worldwide. Below are the advantages of the technology-driven economy:

1.Growth in production rate: Technology improves the speed at which we produce and maximise resources. It is safe to agree that human capacity is limited, and we can go the extra mile in production with technology. Although human efforts are relevant and have formed the foundation of today’s innovation, the delivery quality of machines on tasks is sublime. The introduction of devices and software into real estate, textile, and food processing, has made life more bearable on earth.

2. Maximum utility of time and resources: With software that makes managing and handling tasks easier and faster, technology is helping us save time and improve our efficiency. With technologies like blockchain and Fintech, exchanging the value of money has become quicker and safer. For context: you don’t have to shop with cash in a physical store. If you don’t have time to shop for anything, you can easily shop online and get a discount- saving you time and resources.

3. Quick and straightforward communication: Communication is as easy as pressing a button with technology. Over the years, communication has transcended texts and voice calls to high-quality video and practical collaboration tools. We now have more effective communication methods between teams, organisations and families.

4. Automation and speed: The rise in automation of manufacturing and many other jobs due to computers has resulted in high-speed deliverables, a decrease in the number of individuals working monotonous, repetitive jobs, and increased flexibility regarding work hours. The internet has made it possible to perform many jobs remotely, allowing more and more workers to work from home at their convenience. This freedom reduces carbon emissions due to the reduction of exhaust released into the atmosphere. 

A year after Coronavirus, Technology helped their economy find solace in high manufacturing margins. For context, Singapore recorded $83. 66B as the manufacturing output for 2021, which is a 21.42% increase from 2020..

1. Easy Access To Information: The amount of information that is now available is incredible. At least theoretically, having internet access means accessing nearly all of the world’s knowledge. Due to the increasing power of mobile devices, we no longer need to sit at a desk to access information. And with this wealth of information, we can make learning more accessible and affordable, creating a more educated society.

 Every day we see technology improving the quality of our lives and enhancing our economy. As technology advances, we see uncharted paths paved and innovation streams making our country wealthy and prosperous.

 CONS OF A TECHNOLOGY-DRIVEN ECONOMY

 While we experience multiple advancements in the tech economy, sadly, several other areas experience massive breakdowns and create more societal problems. Below are four significant disadvantages of the technology-driven economy:

1. Unemployment: Sadly,  with the rapid growth of technological advancement, unemployment has also increased significantly. Software and devices are becoming critical thinking in everyday life and every job. A single computer can do the work of so many people in a short amount of time; consequently, it has affected the unemployment rate. Study shows that automation will take over 34% of regular jobs. Fortunately, the silver lining is that technology will create more jobs. The tradeoff will be worth it in the long run.                                    

2. Data is not 100% safe: Cybercrime magazine predicts that cybercrime to cost the world $10.5 trillion annually by 2025. Today, some people know how to use technology for malicious purposes. They can hack your computer, bank accounts, office data, and a lot more just by sitting at home using the most current technology. Sharing even a single piece of information online increases the chances of getting into the hand’s criminals, hackers, terrorists, and foreign adversaries.     

 3. Medical and Psychological effects: Medically, people have become so preoccupied with technology that they neglect their health. Hence, having a variety of impacts on their health. They have issues with their eyesight, obesity, insomnia, and many other problems. Psychologically, these days people can’t sleep without their phones. It also affects the student’s productivity, finding it hard to concentrate on their studies due to the amount of time spent on their gadgets. Moreover, reducing children’s time interacting with others increases the rate of anti-social and behavioural issues. Be sure to keep an eye on your child’s use of social media and the kinds of websites and games they play online. People are addicted to using dating websites, playing games online, and watching movies every night. In extreme cases, some people get involved in gambling and other addictions.

4. War and Terrorism: Technology plays a vital role in human warfare. We could say that the development of the atomic bomb and other weapons of mass destruction directly results from the military application of science. But is this application advantageous or detrimental? As more nations develop nuclear technology and the spread of atomic warheads continues, that capacity continues to expand. Unfortunately, putting some more significant risk. Technology in the wrong hands can end every living thing on earth- else we make Mars habitable early.                              

In the words of Jonathan Sacks, “Technology does give us power, but it does not and cannot tell us how to use that power.” We must choose to maximise technology for a positive impact by solving problems, improving the world, and not creating chaos.