Technology has the ability to make us all more productive – that is the whole idea of it. No matter how primitive the technological improvements are, we want to do more with less effort. The productive gains of a caveman with fire and the wheel far outweighs those without.
And the real kicker is Productivity = Profitability
This is one of the golden keys to understanding how our economy actually works
The more productive you are, the more profitable you can be. The more profitable you are the more you or an asset is worth because in our economic world assets are priced on the future capitalisation of profit!
But with all technological and productive advancements there are always loses. Those who fail to adapt will fall victim to brutal side of Darwinian Theory. History is scatter with the corpses of those who failed to adapt.
The Luddites were just one. Power looms, the stocking and spinning frames in the knitting mills that were introduced by the Industrial Revolution saw the end of the small cottage textile worker. Innovation and Technology brought about a new level of productivity that they just could not compete with.
Learning how to “type set a typewriter” is a forgotten skill in an age where typewriters are now confined to the shelf of museums.
And the much talked about demise of the TAXI industry is well underway. The news of San Francisco largest Taxi Company – Yellow Cabs, filing for bankruptcy is the legacy of an industry that has been overtaken by competing, more productive technology.
Paris Taxi drivers are essentially rioting against UBER and other ride sharing technologies. This is what happens when you destroy or rescind the value of a government granted licence. The owners of such license will do whatever they can to cling on to their position of privilege (and of course PROFIT!)
Technology as the ability to make business more productive (ie profitable) and destroy those that are not.
Like the Effortless Advantage, the Theory of Evolution is alive and well in our economic society.
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