Sunday, May 30, 2010

Why will "high unemployment" continue to be a reality?

Have you been wondering why news about "continued high unemployment" have been so prevalent on the news?

If you did, this post will interest you, and it will allow you to better plan your future.

Do you know what “technological unemployment” is?

The term was coined by John Maynard Keynes (1883 – 1946). He was a British economist  who advocated government intervention to mitigate the adverse effects of economic recessions (the methodology the US is using to get out of the current recession.)

Mr.Keynes alluded to the fact that in the pursuit of profit, corporations seek to reduce cost, by replacing human labor with machines. His point was that over time, the pace of innovation would not be sufficient to find new ways to use labor.

Today we know that is not the case. The knowledge economy has no shortage of innovation. Society experiences "technological unemployment" because new technology creates demand for skilled workers and reduces demand for unskilled workers. Those without skills face longer and longer periods of unemployment and over time are pushed to a lower-wage sector of the economy.

Bottom line: As long as the innovation increases, "technological unemployment" will continue to grow.

So what should you do? You need to do three things:
  1. continuously increase your knowledge (develop)
  2. document your knowledge growth (aggregate)
  3. allow others to find your knowledge (publish)
P.S - It was to help people develop, aggregate, certify and publish their knowledge, that we decided to found Olexe. Olexe is an open-learning exchange, where people and organizations can exchange knowledge, in a structured and certified manner. Olexe is a true knowledge platform, that minimizes the effect of technological unemployment.

1 comment:

  1. Filipe, upon reading your blog, I find that you are ultimately correct. Except that people do not have the confidence yet. People are too busy trying to get rich quick or go back to something that worked in the past but doesn't work today. Because of the economy and advances in technological studies, I believe there will be a time when people go back to the basics, increase knowledge, document it and publish it as you have stated. The question is how do you get people to understand that this works? Are there any proven statistics or facts that lead to this epiphany that something so simple can have great success in our lives? Have a great Memorial Day weekend my friend.

    Rocky

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