I. The empirical change in the labour market of United States: Around 1970' when the initial booming of technology, works at sectors with high-paid cognitive and low-paid manual tasks increased, on the other hand, jobs in middle-paid routinized tasks which required such skills were hit by unemployment due to technological interventions. After a small period of initial boom, "the marginal productivity and therefore investments in new technologies decrease as capital accumulates" which lead to a decrease in the demand for high-paid cognitive and middle-paid routine tasks, and an increase in low paid manual tasks and unemployment.
II. Impact on education, distribution and regulation policies: The technology also impacted the educational system due to its demand for the high - skilled employees to fill the voids and smooth running. It will be interesting to look at how bachelors in technology and engineering sector were booming around this change in economic policies. The income distribution and regulation of technology also lead to the equilibrium formulated between capital, labour and technology.
Equilibrium impact upon technological process: “It is intuitive to assume that technological progress not only changes relative labour demand but also impacts on other parts of the economy. For example, in 1930 John Maynard Keynes wrote: We are being afflicted with a new disease of which some readers may not yet have heard the name, but of which they will hear a great deal in the years to come—namely, technological unemployment. This means unemployment due to our discovery of means of economising the use of labour outrunning the pace at which we can find new uses for labour. But this is only a temporary phase of maladjustment. . . . If one believes at all in the real values of life, the prospect at least opens up the possibility of benefit. (Keynes, 1930)" This shows the importance of equilibrium to be achieved for redistributing the positive consequences of correlation between labour and technology.
