Question

With the evolution of the role of technology, why do major economic variables like perceived value, willingness to pay, human roles in production and usages, human engagement in usages, production and consumption level, revenue, and jobs keep changing? Take the example of the evolution of transportation and healthcare service to clarify your explanations. How will self-driving cars likely cause discontinuity in the trends of those major variables in the transportation industry?

PLEASE ANSWER BROADLY.

Answer 1

Self driving cars will reduce the perceived value of human effort spent on driving cars as it will be considered waste of time as in the case of healthcare service which will be directly able to assess the disease at the press of a button, there is no need for a nurse to come and take the blood sample as it will have more inputs, in terms of time and money spent, and the output is the same.

The willingness to pay will also reduce with the evolution of technology as why would one pay more for the nurse and a driver when technology is able to do it and execute the task with limited error. People will like to spend on perpetual products which have a good lifetime, in stead of spending money on humans where there are chances of error.

Human roles in production and usages decline as it has more inputs in terms of time and money spent, whereas technology reduces the time and effort and instead lets humans spend time on things that matter, such as creating a new virus in healthcare or spending time evaluating a project instead of driving a car. Human engagement in usages enhances as they have access to quick inputs because of technology.

Production levels increase which make up for consumption level as technology does the job of a human in half the time, this increases production levels and thereby supply increases, reducing the prices, and human beings are able to afford more goods and services.

Major revenue contributing factors keep changing thereby more jobs for sophisticated areas of work because of evolution of technology.