Technology is a great force of innovation and economic growth in our economy today. However, there are times when technology causes pain for a short period of time in various industries. There are a lot of people today who are concerned about the future of the middle class. In fact, Janet Yellen recently made a statement that has a lot of people concerned. She said that technology and globalization are killing the middle class as we know it. Over time, technology is usually a force that creates jobs for people to have. However, we are now in an age where it is hurting jobs growth.
One of the largest industries impacted by automation is manufacturing. Over the years, many manufacturing jobs went overseas in search of cheap labor. However, there are still costs to buying and manufacturing goods that are made in Asia. Many companies are bringing production back to the United States because of the technology and the infrastructure. However, the manufacturing industry is not booming as much as you would think based on this trend. A lot of the jobs have been replaced with automation. Robots can work as much as you need them to, and they are much less expensive over a long period of time than human workers. This is creating a lot of issues in various areas of the country today.
Another aspect of the economy that is hurting the middle class is taxes. There are a lot of people today who are taxed heavily in their life. Janet Yellen believes that the middle class needs a tax break. However, a lot of the legislation in Washington revolves around giving companies a tax break instead. With all of the technology disruptions that are going on in the economy today, the middle class needs more help than ever before to get to a new level.
In the coming years, many people think that the middle class is going to continue to get hurt by economic trends. Automation is only going to continue, and there are a lot of industries that have never recovered from the latest recession. Now is the time for companies to go out and figure out a way to take things to a new level for workers. Workers must enhance their skills in this new economic age. With all of the changes going on, now is not the time to relax.