How can technology increase inequality with the
Technology can increase inequality if it leads to increased automation and job loss in sectors that employ a large number of low-skilled workers. This can decrease the demand for low-skilled labor, leading to increased unemployment and lower wages. In addition, if new technology is expensive and only accessible to those with high incomes, it can further increase inequality.
Explanation:
Over the course of the past several years, there has been a growing worry regarding the role that technology plays in contributing to the worsening of income disparity. Even though technological progress can result in increased economic growth, it also has the potential to result in increased automation and the loss of jobs in industries that employ a significant number of individuals with low levels of education and training. This can lead to a drop in the demand for labor that requires low levels of expertise, which in turn can lead to higher unemployment and lower earnings. In addition, if new technologies are expensive and can only be afforded by people with high salaries, this can contribute to an even greater disparity in wealth.
Step by step
Solved in 2 steps
