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Advances in Technology & Business Productivity – friend or foe of the economy of America?
Technological progress is widely welcomed by the society. We can not deny the benefits of technological progress. On the location, place food in the fridge to the microwave later, the food, it is easy to see the benefits of technological improvements. But how emerging technologies impact the American economy? How are things like the Internet or networks in general changed the landscape of business and economic world? Why is the unemployment rate at 9.5% according to the Bureau of Labor? Is technological progress actually hurt the American Economy at the moment? My answer is yes, I think it is. And the main culprits are outsourcing, offshoring, manufacturing automation, and all types of productivity increases. Here's why they hurt us:
As a self, I currently have a small company, consisting of a few pages. In December last year in anticipation of school take a lot of my time, I decided an attempt to recruit staff to help with the work while I was handling enter school. I also read books on how to automate and streamline business processes by working to reduce the programming and they also recommended the removal of the lengthy and repetitive work that can not be done by programmed scripts. So I read books on outsourcing, where to look to rent, and how much to pay. Since I was from and I made little capital to start as cheap as I could had, so I've decided to outsource this work over seas, to India because they experienced and knowledgeable in IT and also they are much cheaper than hiring locally. Now it's not like I wanted to take away jobs of thousands of people but my mother lost her job at AT & T by outsourcing asked me why I, that had something to do? She was against all forms of outsourcing and wanted to know why I would support this kind of business plan. I told her that I could not afford, hire locally and through outsourcing, I could be more work than I have ever been to do my own, and in turn would bring more money in my pocket, or our pockets. I did not want to harm the economy, and I thought it would the economy by helping me purchasing power of consumers. This makes sense in the short term and small in scale but big companies that this is hundreds of thousands affect people, and that's when it really hurts the economy. But none-the-less, my experience was so kind of a microcosm of what is going on. Also if I increase productivity dramatically, I did not see an increase noted, this is because the people were not spending what little money they had interest, what I offered. It was bad timing for what I sell. So after two months I had my two employees let go at my cost down and keep the profits. I should originally for writing in defense of the technology and outsourcing, but the evidence against him was overwhelming and made more sense that the evidence and automation to defend. It was not until I had to this research paper I posed the question: How can we expect more sales if our customers, Americans, not Jobs to give them money?
From my own experience, I am able to see how the Internet itself has a self-employed young students like me in the face access of power to a cheap labor force. The Internet is a portal of communication that allows me to find the open man on the other side of the globe, with extremely low wages requirements. Of course I have other business or wants to rent it! These workers actually compete against each other to provide more online Service, more hours, for cheaper wages. So it makes sense to do this right? Wrong. People to defend the swap, as the authors of the books I read, and it could be argued that outsourcing is to allow for lower costs of services and products. Now, sometimes that is true. Take a look at Walmart and its low prices, in this case, it is true. But, many times the companies will simply reduce their own costs while at the same price for the customers. Take a look at AT & T, they lowered their costs by what they "sunset", which basically means in the closure various departments and moving them over seas. But we still see the same price from them! Meanwhile, as every major company starts its IT jobs to Seas, you are actually fewer customers, because the American customers have less purchasing power, and this will cause to want the groups to either reduce costs or increase prices in a vicious circle cycle.
According to research by 2003, the outsourcing began to gain much momentum, says Forrester Research, that offshore outsourcing of U.S. IT jobs fell from 12% in 2000 to a staggering 28% in 2003, and META Group predicts that Inc would a percentage of the offshore outsourcing year to increase by 20%. Today, Forrester Research says that outsourcing has reached a turning point, although I did not find any exact numbers, but myself in my business I found it. The people heard rentals in India, because they have become too expensive, and now jobs are expected in parts of Asia like the Philippines is moving, for example. This means Now that India's new middle class, a lack of jobs after the E-Commerce Times experience. The trend was hire Filipinos and half Filipino I was happy to accept it. I could and wanted to hire someone for only $ 250 per month for a full-time work. The problem was that I either have to train from scratch, or a detailed business Process that wherever people could follow from his experience. But I never got around to it due to being busy with school. But fortunately for me, and unfortunately for those without jobs, a new kind of outsourcing caught my attention and I started using it, much easier and cheaper way of outsourcing.
From August 2010, the recent outsourcing trend has become cloud sourcing. Cloud Sourcing the way, does not exist without the Internet, and it can not exist without the Third World workers with Internet access. Cloud Sourcing is where you do not hire individuals separately, but share your business processes into small pieces and you post them on this site cloud sourcing, to MTURK as Amazon, then thousands of people to your "chunked" complete business processes for pennies instead of dollars. So instead of paying a Person $ 15 for a certain number of hours of work to do many different tasks, you pay hundreds of people a few cents to do a lot smaller and easier tasks, some take only take a few seconds. This allows you to scale your business very easily, and if done correctly, it actually allows you to work more quickly and cheaper. But the bottom line is that the only people who benefit are workers from the developing world, and the entrepreneur. This innovation, which I admittedly currently love and appreciate, not to solve our economic problems, and as a result, it is increasingly difficult to sell. Since its harder to make sales, its increasing my need to lower my costs and increase productivity! As this technology has turned against us? It seems like we made our own Wisdom is suffering, or perhaps ignorance, because we do not recognize that our customers need jobs to have money.
Some people argue that outsourcing Offshoring and increased labor market is actually deflation increases the value of the dollar. But these claims were from the company during the hype of outsourcing and have been as an excuse to give the jobs to other countries besides America and comfort an uneasy America. Sure, in theory it should lower prices, but really only its on the reduction of production costs, not so much to reduce prices for customers. According to Professor Ron Hira of Rochester Institute of Technology, an outspoken Opponents of outsourcing and offshoring, is the name of the game is cost reduction. And I would agree, I do not and can not lower the prices of the goods I sell, because I do not even do. All that I can do really is, my lower costs and increase marketing starting my own profit increase. Any way, he also believes that cutting out the high-paying IT jobs out of America, which has happened faster than we realize, along with the loss of manufacturing jobs is one of America rich nation change in a poor nation. He says that it is not only the lower end, low wage jobs but high-end workstations, which are quickly lost also. In 2003, IBM had about 6,000 employees in India. Later in 2009 it was reported that they had approximately 90,000 employees in India, but they would not say how many. He also reports that companies like Microsoft, Google and Boeing have opened the-art research and development facilities in low-wage countries such as Bangalore and China. These are extremely high end jobs go to other countries. Also, doing the research I've read that jobs are lost and gone forever they can not return to the U.S. if we ever decide simply to change our policy. Why is this true? That's because you and we have closed or removed many of our Manufacturing and industrial plants. If there be a change in the required U.S. industrial expansion, we would be underfunded and poorly equipped to easily move hundreds of thousands jobs back to America. This means that the longer we outsource everything we have to rely on it. But how can we know what will happen in future? Thus we decided to repeat the story, and this is not the first time a country has outsourced on a large scale.
This is also in Great Britain during the transatlantic Slave trade happened. In the 19th Century was when the major commodity cotton of the day, it had grown especially in the southern states of America. We sold the cotton raw and spun in turn form the UK The British took these materials produced and bedding, clothing and fabric, and sold them worldwide. America became rich from the Cotton, was mainly in the south and Great Britain on its own rich material exports as well. At that time Great Britain as a nation, held 80% of the financial gains from these exports and it has the national wealth, and as a nation to become rich. Finally, some of the mill owners had the idea of increasing their profits by setting a much cheaper Workers, and further by the production to where they were, they should sell it again to increase profits. What place was that you ask? It was India! India was then their colony, and their main customers of tissue. So they decided to start growing cotton in India, instead of buying from America. Would you mills and textile machinery to move to India and save a lot of money on shipping costs and wages for their work force. It seemed like a good idea. What happens, however, that only 10-15% of Earnings from the textiles back to England. But 80% of the profits and money-profit remained in India and it was a great loss to the British economy. This huge hit not only the Unemployment in the UK caused England but now rely on India to produce its cotton and textiles. Then, when the outbreak of civil war in the slave States, This drive India to the main source of cotton and the United Kingdom depended only on them for cotton.
As we can see, outsourcing is a good way Power to take away your land and give it to another. And, unfortunately, is exactly what we do today. It is not only the progress of our business models but literally technological progress, and possibly damage the our economy. Since the dawn of time man has sought to increase productivity. The spear was one of the first tools that just that, it wanted a man may bring home more meat. Fire also increases productivity because it allows more work to do, whether it uses was to keep larger trees that intersect to create light, warm, or as protection. Tribes also found that by trading with them, the productivity . Increase When Adam takes 4 hours to make a spear and 3 hours to make an ax, and Oz only takes 1 hour on a spear, and only 2 hours to make an ax you think that Oz has no benefit could result from Adam, because he make both positions faster. But if Adam had done in two axes and Oz had to make two spears, and then they were for trade and ax for a spear, they would save both after 1 hour of work. This was taken over by David Ricardo in 1817 and was on the exchange between countries. But to take his idea into modern terms, it would be much more productive if Adam were to create an assembly line he could make several spears in an hour. And changed the new technological revolution in history, as we all know from basic history.
As we grew to know that the production line so much good for our economy, how can it possibly be bad? We know that there are more jobs in factories and increases the throughput of products created, which means that more people can afford these products. That is true, but there comes a point where, if all companies need only a few workers, their products, then literally out of work do not produce the money to purchase these products. The reason for this is the case today, because we are now as good engineering technology Solutions to increase productivity. We basically our way out of the engineering factories. A modern example is the automotive industry, but actually it is Agriculture, construction's on, and almost every sector in which a technological breakthrough replaces humans.
Today it takes only 2.23 workers to a Nissan build on the Nissan Motor Manufacturing plant in Tennessee. This is the most productive assembly plant in North America and in fact it has increased by 6%, where last year it took just 2.09 Employees per vehicle slid. The manufacturers are constantly trying to get this number lower and lower. That means more jobs are deleted are actively trying. You can imagine the effect this has on the economy. You can see what's in the Detroit economy, the major center for automobile production used to pass.
In the early 1900s, 1909 to be exact, there was a lot more companies the production of motor vehicles, about two hundred. But within the next fifteen years, the number dropped quickly. This appeared to shake off during a period of 15 years, where about 200 companies, fell either bankrupt Merger or from the simple fact that they were all so close together geographically. This kind of competition for such a product is expensive, too much, and the company quickly fell. Only three companies ended up dominating the entire American automotive industry. General Motors, Ford and Chrysler. Chrysler was the last to join the three that does not enter until 1924, as Walter Chrysler, former President of the Buick, which was bought by GM, started his new company. Since that time a fight for the increase in profits has been to decline Costs and higher productivity. Million was invested in research and development to create a competitive advantage, because if this company would be just a little slip they would from their competition, which happened was fierce for the years before swallowed. Mathematicians are employed to develop the business and produce highly charged Algorithms to determine the company to move on. You see, the development of better car was only part of the game. More importantly, they need better production process to develop designs. Better ways to create better cars lighter and cheaper. This created jobs for a while. Automation began to slowly begun to take away those jobs back.
Kuka Robotics is one of the most important supplier of robotic solutions for many industries. They create the large robotic arms that suitable grabbing, flipping, spinning, are large auto parts, and these together with precise accuracy, time and time again. These robots according to their website currently have applications in 20 + industries and within each industry, there are dozens of applications. Everything from painting, measuring, testing, inspection, welding, Fixing literally everything. The man has now only a few simple things to do. Quality assurance, monitoring and more, and a few odd jobs here and there. This Robots are great on a plane because they do something so complicated to a very simple process. But again, these robots are only the jobs out of the hands of American workers.
Also people say that this is great because it gives us better prices for vessels and other things that are cheaper to manufacture. Now that is really true? Throw take a look at the numbers. According to MSNBC, car prices are actually rising! Yes, they rise, even though we supposedly reduces the cost to create them, reduced the man required Performance and increased the rate of production. These three things should lead to take the prize. But they are not down!
Why is this happening? MSNBC says it's because automobile manufacturers are better at matching their production rates to lower consumer demand. From 2006 to 2009 car prices have increased, but the Automakers offered all sorts of incentives that brought the price down substantially, making the price remain flat growth rate. There was basically no price increases during this three years if you take into account the incentives to take. But things changed in 2010 with the Toyota crisis is changing its ability to offer incentives. Since they began, production in response to fall to less stringent enabled this will enable them to offer these incentives. Because of the strong used car market, our recession which was partly caused by the loss of jobs brought new models have had a price increase. A Ford Taurus now costs on average $ 31,458. What is to about 25% in price from last year. So we can see that automation lead immediately to lower prices. The sad part is that we not simply replace this Robot with the people even if we had. The companies will not be able, the cost of the redesign of its entire manufacturing system. Companies are now in a reduce cycle of rising prices and costs or blocked.
The textile industry is another example. American textiles and clothing industry was under severe cuts in profits. This is because even if a textile company has been working here in America with American workers, it would eventually lose because of the cheaper competition which is outsourced, off-shore, and probably automated. Since the 70s the U.S. textile industry was facing hard times. The combined manufacturing employment in this industry was produced by 12% in the 70's, now it is less than 6% and in 2001 there were hundreds of textile plant closings. This led to some 60,000 workers lose their jobs. The development of new synthetic fibers, has been the cause of Textile closures, with new and easily produced fibers, the need for all necessary measures can provide material are eliminated, together with the costs. Industries these days are literally forced to compete, if she should die. If they are not paths eliminate related to lower costs, increase worker productivity and they are easily accessible from the company that is willing to be beaten. We should remember that these Companies are too rich to do so. There are great incentives for companies to automate. Unfortunately, they do not think long term, because if it is kept current, it could eventually be a breakdown or a change in power. Or simply, who will be there to buy your products if no one is there to deal with them?
Sorry the automation of the two industries described above is not where it ends. Automation is easier to describe in the automotive industry, as we have seen the robotic arms in movies and on television, so it is easy to the loss of a job they do understand. But the technology is slowly taking the everyday tasks. Self check-out lines are the new Wave in grocery stores, and I must admit, I love to use them. Online shopping is cutting the need for places like Circuit City. By the way, Best Buy is only survive can, because if the experience of the shop is able to deliver to the consumer. Places like Best Buy, Starbucks and are stored on the provision of satisfactory experience excellent. But once you people bored by Best Buy, it will be out the door because they lost much of their revenue on sites like Amazon.com, Ebay.com, Newegg.com. The websites are able to conduct business with virtually no cost over the head, or even inventory. These sites offer huge discounts compared to Best Buy, the employs about 180,000 workers, from 2010, close it, because the online competition, jobs gone, too wanted to be. Cinemas losers are people like me pushing for the online delivery of movies. And the food industry is downsizing its workforce in favor of workers that robots do not need services Wages and are not able to form unions. I actually read, although I can not remember where, that automation will cause more job loss combine as outsourcing and offshoring. The jobs lost by this type of technological progress was occurring long before English even outsourcing in the dictionary.
As we can see that technology is our life better. It makes our lives so much better that we do not work once again! But unfortunately, things cost money, it turns out, that we must do more to work. We must recognize that employment continues on a downhill slide, and it only gets worse as the recession. We need to put out the best minds together to figure out a way to turn back technology to our advantage. How can we get people back to work? We need to find profitable ways to create more jobs. With all this technology, perhaps we need to start only aim higher, perhaps to we create new industries to explore new depths in science and society. Perhaps it is a technological breakthrough, the birth of a whole wave of industries and put our people back to work. I think we are stagnating only at the moment and we have to put on our thinking hats, drag the drawing board and start a Dig away to find ourselves out of this hole we have dug ourselves in. But until we are able to take advantage of technological progress and know when we are to let our jobs and, to create more jobs, it is an enemy of the U.S. economy.