Effects of IT on the Economy

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Our staff of freelance writers includes over 120 experts proficient in Effects of IT on the Economy, therefore you can rest assured that your assignment will be handled by only top rated specialists. Order your Effects of IT on the Economy paper at affordable prices with cheap essay writing service! Over the past few years IT has played an even greater role on the world economies. Before the use of IT in our economies the way governments watched over there economies was totally different compared to today where things as the internet has made keeping track of sales, purchases is a hard thing to do. Also such other things such as the premise that IT has caused unemployment, the contribution of IT to the inability of governments to control their economies and the influence of IT on the stock market will all be discussed. But with all this in mind it is clear to say IT has played a role in the economy and will currently and continue to play as role as we more heavily rely on IT.

The premise that IT has caused unemployment. It can be said IT has caused a dramatic effect for such things in our societies such as unemployment. It is also true to say with the use of IT this has caused unemployment due to today's workforce being more efficient and better equipped to do there jobs than ever before. Currently the trend that is appearing is that people need to have skills in one area rather than rely on older types of work that was done in the past etc Manual Labour.

In such things such as manual labour where 50 years ago all of this type of work was done with men physically doing this with there tools etc which was slow and tedious but provided many jobs for unskilled workers but whereas today we rely on bobcats, bulldozers etc and other technological advancements in this area to do these jobs which is quicker, more efficient and requires a lot less workers than before where ass unskilled workers done these jobs before workers with more skills today do these jobs. There are still jobs that require labour like previously but not in the numbers as before but the disadvantages outweigh the advantages in this area because you did not need to have a lot of skill to do these jobs but now even to work a bobcat, bulldozer etc you need some skill to control the vehicle and work it.

Also in the area of data processing where we required huge warehouses to store the information and huge numbers of people to enter data, maintain etc now we can have data processors done by small groups of people entering it into computers and there is a smaller chance of error and better data backup than before, which has inturn created IT jobs which has helped society and given more skilled workers to this area but has also lost more jobs due to less need for large numbers of data entry workers.

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With the new area of IT into our society, it has given us the need for new jobs which inturn has created new jobs for us all. Whether it be in simple computer operators, help desk, network administrators etc it has created jobs. But it is hard to say whether IT has filled the gap between this new area of work and the jobs lost due to IT. It is to my opinions that IT has caused more loss of jobs compared to jobs being made.

The dot com boom also presented society with a lot more IT jobs which inturn helped the economy and which then helped the dot com boom because there were plenty of workers in the IT area with plenty of jobs available. But when demand flattened out so did the jobs and need to workers, and when the dot com bust happened there were a lot of jobs in the IT area lost due to the loss of interest and firing/retrenching etc of a lot of IT workers because it was apparent to investors etc that dot com companies were not profitable which meant investors took there money from these business's and invested elsewhere and hence a loss of job, and loss of income for workers in the area.

But there have been claims that IT has not caused loss in jobs but rather ha made new jobs. As quoted from http//www.newaus.com.au/econ5.html "Any period of prolonged unemployment or rapid technological change invariably conjures up the myth of technological unemployment, even though history and economics has long since discredited it. What is particularly worrying about the current resurrection of this economic fallacy is that it is so-called academics who are struggling to give it respectability. Greg Callaghans article Digital Downsizing in Employment is Creating a New Social Divide (The Australian 14//8) epitomises all too well what now tends to pass for serious economic and social comment in the Australian media. At least it demonstrated the utter poverty of left-wing economic thinking on technology and its basic intellectual dishonesty." Which to an extent there has been mixed opinion in society about whether IT has played a role in our unemployment problems, but in my opinion I tend to disagree and think IT has caused more losses in jobs rather than helping.

The contribution of IT to the inability of governments to control their economies. The way governments control their economies can be different per state, or it can be different per country. Also with the way these governments tax IT is different as well and these are big factors that contribute to how IT can cause inability of governments to control there economies.

In Australia the government does not have one standard set of laws that we all abide buy but it varies from State to State i.e. Pornography, Fireworks, Online Gambling and so on. But it is legal for a company to operate from these states and provide service/products to people in states where it is illegal. An example is online gambling where as it is illegal to run these services from anywhere in Australia except for Northern Territory and Australia's Capital Territory where it is legal to setup and have these services. This in turn lets you gamble even if you are not in these states, but the Australian government still collects taxes from these companies to an extent it can still control the way it controls the economy when online gambling is concerned. So where it is illegal to setup these online gambling sites in states that do now allow it means it prohibited business from running these services out of that state but it does not prohibit people from playing these online services if the online gaming sites are located in places where they are allowed to operate legally. So in fact the government wins in both aspects because it sill picks up all the taxes etc involved in these services. But online services are harder to tax because it maybe harder to calculate costs and also to what extent the government wants to tax them so it is to a fair amount.

With the widespread use of IT in all sectors of our lives it is true to say that governments of today are having trouble controlling this. The internet for example is a thing that is very hard to control seeing as it really is international and even if content is blocked there is still ways around it. For instance China banned the search engine google.com totally from being viewed in China, but people out there made alternate ways to view the page (proxies etc) which made China re think there strategy and allow access to the site. China wanted google banned from being viewed because it contained sites the government did not was its population to see what was out there in the world and could better control online shopping etc in China to an extent.

The way government's tax IT has also be an issue of late because a government can lose control of the way it controls its economy. With saying this it is becoming increasingly harder for governments to collect taxes for goods bought online. Online shopping still gets tariffs applies to it etc but if someone in Australia purchases a product from the US and imports it from here the US government collect the sales tax rather than the Australia government. This is why the Australian government is trying to encourage more online shops here because if goods are bought from Australia from anywhere else in the world the Australian government can collect the good and sales tax etc which is better for them in the long run.

Different laws between two countries can be an issue as far the way economies control there issues because what maybe legal in one country maybe illegal here in Australia which means the government can have trouble filtering and stopping these things/services etc into the country, which can also harm the economy. But this has been the case for many years where different countries laws affect us, but with the growing pace of online shopping this maybe an issue that arises sooner rather than later in concerns to the internet. But at the moment IT has been a good thing for the Australian economy and also other major economic powers like United States and the UK and even better for us because the US and UK as of late have been buying goods of us because it can be bought here cheaper than over there which in turn fuels our economy

But it can be said that IT has caused a good deal of confusion in the past few years as to how governments control there economies concerning IT but this is flattening out and becoming more controlled and stable due to people now expecting how IT can effect economies.

The influence of IT on the stock market. As of late IT has played a big role in the way stock can be bought and sold. Now the value of stock can be monitored literally 4hours a day, and be sold and bought at any point where a share lowers or gains value IT has had a big role where the stockholder is concerned. It has also greatly affected the way the stock exchange runs where now where there have been specialised computers made to continuously monitor and analyse the stock exchange to give the latest and most update figures which inturn leads to a more stable exchange where the values of shares can be predicted a lot easier than in the past.

The dot com boom has played a role in the way the stock exchange is run by when there was a lot of hype about IT; it spurred the use of computer systems to be used in conjunction with the stock exchange which then gave investors a lot more updated and correct view of the stock exchange. Also when the dot com companies hit the stock exchanges around the world there seemed to be a lot of interest for them, seeing as it was a new area never seen before by investors etc which then inturn caused there to be great interest in these new dot com companies. When stockholders/investors etc started investing in these business's there stocks sky rocketed which made there share prices be worth more than the dot com company could ever make. There was great interest in these companies even up to when they busted due to bank statements for the years following all the hype which showed dot com companies running at losses or barely making a profit which investors did not like and then started taking there money from these dotcom companies and investing elsewhere which caused a rift in markets. Investors widely started taking there investments from these companies which overall affected dot com companies and then caused a bust where we seen a lot of companies fail and cease to exist. This caused the dot com bust due to the low interest and investors taking there money elsewhere. But with this happening there were a few dot com companies that did survive even to this day (Amazon, Yahoo), but as you can tell by today's markets the dot com hype has levelled out and seems to be stable which in the past could not be said where when the dot com companies shares boomed everyone invested i.e. large shareholders to small shareholders who only had a small stake in the company. There seems to be renewed interest in the dot com due to online sales growing and people are more willing to spend money online which inturn helps out these dot com companies. According to http//www.internetnews.com/bus-news/article.php/1811. "In a sign that the Internet sector may be nearing the end of its 18-month-old shakeout, a new report from Webmergers.com shows the number of shutdowns and bankruptcies by dot-com's in the first half of this year fell 7% from the same period last year. While at least Internet companies closed their doors or filed for bankruptcy protection in the first six months of 00, the number is down is down dramatically from the 45 cases during the same period in 001, according to the San Francisco research firm that has been tallying falls in the industry." But IT has played a role in the stock market with the dot com boom and bust where if affected other areas of the stock exchange to an extent which made investors/governments re think there views on IT as far as the economy goes where IT stock prices were determined through supply and demand.

In closing it is clear to say IT has played a role in today's economy and in fact the worlds economies and will continue to do so. Whether IT has been good for the economy is another thing and it can be said that it has helped our economies more rather than hinder us. IT is and will continue to play a bigger role in our society and economy as we know it. Whether our economy adapts to these new changes and embraces them is another thing but it seems as if the government will incorporate these new changes. But how the government controls this is another thing. IT will also have effects on the stock exchange and unemployment rates that will affect the economy in the long run and will have benefit society and will continue to benefit our society.

Bibliography

http//www.internetnews.com/bus-news/article.php/1811

http//www.news4.com/News4/Technology/0,111,-1_114765,00.html

http//www.nyse.com/

References

http//www.internetnews.com/bus-news/article.php/1811

http//www.newaus.com.au/econ5.html

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