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The Economics of Technology

Its February 2020, and capitalism has not changed much, not as far as division of labor and Creation and distribution of wealth is concerned. While the basic principles of creation of wealth have not changed much, there has been an evolution in the tools of wealth creation. Technology, as we speak, has had a dynamite effect on who owns what. Adopters of technology at the onset of the new millenium are currently controlling the wealth. So, how has technology been adopted as a tool in wealth creation in the 21st Century? 

In order to understand the role of technology in capitalism, it is important to understand the basic principles of economics. Division of labor is a key component in Capitalism. In order to maximize profits, division of labor adopted technology, the Agrarian revolution is the perfect example. Technology then was a means to simplify production by increasing the output, with limited input, thereby increasing profits. 

Today, technology is not limited to increase in production. Early adopters realised that by breaking down profits to smaller portions and distributing it to huge traffics, insignificant profits would cumulatively control the market. Technology has therefore been utilized, not only as means of creating profits, but controlling the market, in the demand supply equation. Get the traffic, decide what to supply, and the price, because you own the market. That’s Why Traffic Matters

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