Technology has allowed us to change the Earth, take the many things that it has given us and use them to our own means. Economies of civilizations new and old, alive and dead, have shaped not only the way we interact with the world around us, but with each other. Both are key aspects in defining who we are as a whole, defining what humanity is. But how do these two concepts interact, where do they meet, and where do they part?
How do changes in an economy affect technology? Industry, and through it, the economy, is often a driving force behind technological development. Technology is often developed to fulfill a need or a want. This concept can be tied directly into the economic foundation of supply and demand. A good example would be the internet, which is a technology developed for the exchange of a huge variety of things. The internet was developed out of several wants from several different communities. DARPA designed the ARPAnet in America because there was a huge desire for faster knowledge transfer. The Rand Corporation of America created the concept of a military information network. The National Physics Library in England developed a commercial network, the NPL network. In France, the Institut de Recherche d’ Informatique et d’ Automatique developed the scientific network, Cyclades. These various approaches, from around the world, were the building blocks of the internet as we know it ("History of the Internet"). The idea for these things all came from desire, all of them at least partially economic. What is interesting in this particular example is that from economic needs, technology developed a whole new economy. Economy is defined as “a system of interaction and exchange,” and that is exactly what the internet has become, which leads me to the opposite question(Merriam-Webster).
How do changes and advances in technology affect economies? The complexity of this subject is astronomical. In an attempt to simplify, technology changes what economic historian Joel Mokyr termed “production potential.”(Mokyr) By this I think he means that newer technology doesn’t change the economy of a society, but changes what it can be. Advancing technology can change the boundaries and constraints, and therefore the potential, of their economic prosperity. For instance, farming technology like tractors and harvesters allow the farmer to potentially increase his production, though if he chooses to not use them or chooses to use them less then he could, he might not reach that potential. The other way new technology can affect an economy is by being what is being exchanged. Many societies have made use of their technological advantages. For a long time, only China knew the secrets to creating silk, and thus became the sole producer of silk, gaining a lot of wealth from Europe. At other times, newer technology has negatively affected different communities. Take for instance the Luddites, a group of skilled workers in the textile industry in 1811 Britain. They were threatened with being replaced with machines operated by unskilled workers and women, which produced cheaper, though inferior, goods. These new machines droves down their wages, and in anger, they began a six year war against the machines, destroying their frames or their inner workings (Binfield). Another, more modern example of this would be in the automotive industry. Years ago, new technologies like the assembly line and replaceable parts gave many factory workers good jobs. In the present, those same workers are unemployed because of, again, new technology, being laid off and replaced with machines.
By no means do I intend to infer that technology is the only factor in economic growth, or vice versa. Both of these subjects have layers of complexity far beyond my comprehension. They depend on each other, but it is impossible to explain all the near infinite way they do so. The relationships between technology and economies are as hard to define as they are to deny, and the complex web that they weave when looking at the bigger picture is simultaneously awe-inspiring and horrifying. In some ways they act as their very own economy, economy demanding from technology, and technology supplying the potential for the economy to grow. The two have never or will ever be separated completely; they are fundamentally part of humanity, and we will always be both the pawns of, and drivers of, this complex relationship.
Works Cited
((Sorry for the ugliness, blogger had some trouble with the links....'<'s and '>'s freaked it out))
Binfield, Kevin. "Murray State Faculty Pages." Luddites and Luddism: History. John Hopkins
University Press, 2004. Web. 30 Mar 2010.
http://campus.murraystate.edu/academic/faculty/kevin.binfield/luddites/LudditeHistory.htm
"economy." Merriam-Webster Online Dictionary. 2010.
Merriam-Webster Online. 30 Mar 2010
http://www.merriam-webster.com/dictionary/economy
"History of the Internet." Web. 2 Apr 2010.
http://www.youtube.com/watch?v=9hIQjrMHTv4
Mokyr, Joel. The Lever of Riches. Oxford University Press, USA, 1990. Print.
Rogers, J. D. "Information Bridge: DOE Scientific and Technical Information." The Impact of Technology on the Economy. Department of Energy, n.d. Web. 18 Mar 2010.
http://www.osti.gov/bridge/purl.cover.jsp;jsessionid=1CD67FAFCDD31C5EE762C5FA7527A0CD?purl=/39688-bUVrBN/webviewable/