Economic Impact of Automation and Employment Challenges

This assignment examines the economic impact of automation, focusing on its effects on GDP growth and employment. The analysis highlights the potential benefits of automation, such as increased efficiency and enhanced output capacity, leading to a higher standard of living. However, it also acknowledges the challenges, particularly the potential for unemployment among unskilled workers. The assignment proposes solutions such as providing suitable skillsets to address unemployment concerns and retraining programs. Additionally, it discusses the role of online tutorials and technological advancements in facilitating skill development. The assignment suggests that automation can create a win-win situation for all stakeholders and that it can free up human resources from low-skilled jobs, allowing them to be trained for professions with shortages.

I am of the opinion that automation would be positive for the economy. As highlighted in the
video, it would enhance the efficiency and thereby enhance our output capacity without
allocation of incremental resources. This would lead to higher GDP growth and lead to
improvement in the standard of living for the people. A key concern arising from automation
would be the unemployment especially for unskilled people. I think it is a legit concern which
would need to be addressed by providing the people with suitable skillsets so that they can be
absorbed in the economy. Further, as witnessed in the past, technology based change can
make people uncertain. However, the solution to this uncertainty is not to ignore automation
but to make requisite arrangements so as to rehabilitate those who would be adversely
impacted.
Also, it is essentially not to see automation as a problem as it can also provide solution to the
problem of unemployment. With the advancement in technology, it is increasingly becoming
possible to acquire useful knowledge through online tutorials which may be freely available
online. Technology has allowed us to make giant strides towards progress. Further,
automation to an extent has already taken place and the next wave of automation would be
driven on the gains derived from the initial experience of automation. Also, it is possible that
automation would allow more productive use of human resources which are currently used
for low skilled manual jobs. If these can be automated, then the freed labour resources can be
trained to professions where there is a shortage. This way automation could potentially create
a win-win situation for all the stakeholders involved