Technological innovations are indeed very vital to economic growth and enhancing of human possibilities. We are living in a world that is defined by the technological change rapid pace. Advancements in technology are continuing to reach far into every single sector of the American economy. Many countries including America are searching for policies to create new jobs and stimulate growth at a time of continued volatility and slow growth.
At the end of July, The American Bureau of Economic Analysis released the blockbuster of a 4.1% economic rate of growth estimation for the second quarter. The statistical agency also announced a total revamp of the calculations of the gross domestic product going back decades.
So how did technology help America’s economy?
Direct creation of jobs
In the US, for every position in the high tech industry, on average, five additional jobs have been created in other sectors. Computer industry advancements coupled with telecommunications advancements have increased job opportunities and have strengthened economic growth.
For instance, just a few technicians who have been controlling robotic systems can operate an entire manufacturing plant, with the innovation of inventory systems with the capability of supplying needed parts within a short period for assembly.
GDP growth contribution
Findings from some countries confirm the positive effects ICT has on growth. For instance, an increase in penetration of broadband by 10% is associated with a rise of 1.4% GDP markets which are emerging.
New information about rapidly evolving technologies such as cell phones, cloud computing, and others was incorporate. While the overall economic growth has changed by the updated calculations by a little each year, on average, business investments totals have risen by almost an average of 1% for every year between 2002 and 2017.
It is not necessarily inevitable that all new inventions are making American lives better belong to productivity numbers or GDP at all. New technology also comes in the form of Google Maps and Wikipedia which are forms of free products and may ease tasks but deducted from GDP since they do not cost anything.
Transformation of workforce
The sharing community, with the technology that supports it is rapidly changing the way Americans work. The sharing-based economy has offered employers with much more flexibility in choices when it comes to deciding between how often they work and when. Technology has also transformed how companies conduct their marketing and public relations.
America’s National Academies of Science has convened a panel on the Census’ annual economic surveys, and recently the Brookings institution announces a working co-group which is intended to examine productivity measurement.
This transformation in the workforce will help in impacting the translation of machine learning and artificial intelligence into official statistics before changes in every single aspect of the work operations.
The technology employed by various companies has aided in streamlining business processes and improving efficiency. The internet has provided many American companies with a convenient way of communicating with their customers and participating in competitions for market share, with social media establishing itself as a powerful tool of marketing.
New ways of serving customers in business through the unique connection devices exploration; Corrado and Byrne managed to develop a new measurement of cell phone prizes which have accounted for a rapid increase in quality and power.
Farmers, manufacturers, and small businesses are all enjoying economic gains and productivity because of the internet, and Americans would as well want to capture that. The keeping up with new technologies struggle is real, with the Bureau of Labour Statistics struggling to maintain tabs on the growth of independent work and freelance.
Internal Revenue Service and JPMorgan Chase sources are growing even as the American government surveys do not show it.
New industries and services have emerged
Multiple public services have now become readily available online and through the use of mobile phones. The technology revolution has drastically altered marketing. Companies are no longer relying on traditional methods to generate revenue. New services which have emerged include;
- Native advertising driving customers to a site which embeds a sponsored link which offers value-add content within a newsfeed
- Retargeting ‘sticky-ads’ which follow the user as other tour other sites
- Automation of customer management relationships, which has allowed users to build email marketing campaigns which are drip-styles
- Significant data services which have enabled collecting of vast amounts of data regarding their audiences to predict what next
- New strategy addressing all stakeholders in alignment with their specific needs
More industries and businesses are run on software and effectively delivered as online services. The emerging of new business systems will and is changing how the US economy works. Americans still anticipate the next massive wave of growth with a high rate of technological change.