Answer to Question #236373 in Economics for KAT

Question

Do you agree with the statements that the economic development cannot be achieved without technological improvement?

Answer 1

In conditions when no new technologies are being mastered, industrial production is not being improved, it will become difficult for manufacturers to compete in the market. The only way to reduce the price of products, to increase their attractiveness, will be to reduce the cost to the detriment of quality. Things will serve people less than now, they will need to be bought more often.

Improving product quality will not be in the best interest of most manufacturers. After all, if people do not need to regularly buy replacements for worn out and broken things, production will have to be reduced, or even closed altogether, and there will be nothing to earn.

Some firms will probably want to follow the “carpe diem” principle, wanting to make money here and now (and what will happen next is not important). They will offer the market high-quality products that will be reliable and durable, albeit expensive. But if such products saturate the market, human society will face the next problem.