Introduction:
Economic Disparity refers to the different positions in terms of income, pay, and wealth held by individuals within the economic distributions (Birdsong. N, 2015). In terms of wealth, it refers to the amount of wealth that an individual or a household owns while income inequality known as the income gap, refers to the income differences that people receive. Communication technology plays a role in imposing an impact on the disparity in the economy as recent research suggests that the advancement of such technological advancements indeed acts as one of the factors of inequality. Due to such change, many organizations resort to technology because machines are skilled in routine tasks that require precision and rule-abiding work. Nonetheless, communication technology has also brought positive aftermath. Therefore, such behaviors have left organizations and businesses not much of an option but to turn to machines for excellent work performance. Therefore, we will deliberate on the positive and negative impact communication technology has on economic disparity.
Advantages:
In light of that, economists point out a term called skill-biased technology that creates economic inequality in terms of income and wealth (Violante. G.L, n.d). However, skill-biased technology has its advantages. To elaborate, jobs created in modernized economies are more technology-based rather than traditional labor hence they generally require new skills. In the past, employees worked with tractors and sewing machines but today it is about the internet, robots, and artificial intelligence. Positively, workers who have better education levels and skills perform those jobs thrive, while others who are not as lucky, may not. Consequently, technology has become a complement for skilled workers but a replacement for many unskilled workers. Other than that, information technologies reduce costs of data storage, communication, monitoring, and supervision activities within an organization leading toward a new organizational design. Workers no longer have to carry routinized and specialized tasks thus adaptable workers who have general skills and who are more versed in multitasking activities benefit from this transformation. In other words, the technology change induces an organizational shift that is skill-biased. Technology advancement plays a monumental role in improving the growth of productivity in developed countries. Besides that, communication technology has also resulted in the potential of 3D-printed homes in other areas of the world to allow lower-income communities in third-world countries to build homes for a lower price (Folk. E, 2019). According to the World Resource Institute’s recent report, over 1.2 billion people lack the opportunities to affordable housing. As a whole, 3D-printed homes will hopefully be a viable solution for low-income communities around the world as improvements in infrastructure are expected to expand economic opportunities for previously underserved populations. Fourth, communication technology overcomes time and space constraints hence data transmission among buyers and sellers increases and the production process goes beyond national borders. This technology allows individuals to know their rightful position to others in the market economy which in turn results in a broader market and increased access to the international supply of goods that benefits economic disparity. Besides that, communication technology increases efficiency thus manufacturing organizations can increase their output with technology advancements (Ahmed. A., 2019).
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Disadvantages:
Although technology can substitute the less qualified workers, skill-biased technology can also intensify the existing pay inequality. Economists have long pointed to “skill-biased technological change” as one of the driving forces behind inequality (Blow. P, 2019). Individuals who receive a lower level of education are not as exposed to the usage of technology as part of a learning process compared to those who are. Almost 90 percent of organizations require technological skills as part of a mandatory job requirement, they experience difficulty in getting jobs and when they do, the pay is just above minimum wage thus resulting in economic inequality (Macaulay. F, 2014). Other than that, economies are too focused on communication technology which adds to cybercrime and security concerns so an organization’s data may be at risk and not as secure online as it is on paper. Modern technology opens up a business to online security threats including viruses and other software and hardware concerns. Based on a McAfee-sponsored study, organizations worldwide lose up to $400 billion due to hacking, credit card fraud, and intellectual property theft. In addition, although technology has successfully increased productivity in multiple industries, if the machinery, software, or hardware malfunctions need repair, it affects the organisation’s efficiency since they are fully dependent on technology for their daily business operations. As a result of such dependence, many workers lose skills they may have needed a few years ago to do their jobs. When the technology goes down, not all tasks can be done manually due to a lack of skills or lack of resources and because of that, it may affect the productivity of employees thus adding more inequality economically. Besides that, communication technology also creates a digital divide that leads to economic inequality as it impacts children in low-income school districts’ ability to learn needed technological skills to understand this generation’s progressing economy.
Conclusion:
In a nutshell, when we talk about the impacts of technology on economic disparities, some researchers, economists, media, and news, associate the term with negative implications. However, communication technology also has brought forward advantages and positive impacts in bridging the gap caused by economic disparities. Although it has its pros and cons, it depends on how we control and execute the policies regarding this matter.
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