Answer to Question #283548 in Macroeconomics for Eric Osei

Question

If technological change increases structural unemployment, why do most governments and economists encourage such change?

Answer 1

Technological change occurs when human manual labor is replaced by mechanical labor, implying that machines take the place of humans in the workplace. As a result of these changes, there may be some job losses as a result of technological advancements. People may lose their jobs, and the unemployment rate may drop. Factories and businesses are more reliant on technology than on humans. Governments, on the other hand, are using technological advancements to boost the economy and gain a competitive advantage in all areas. As a result, the government and economists promote technological advancements.