Economic Effects of IT

Affordability & Reliability: People vs Vending Machines

IT has affected the economy tremendously, both in favour of it and against it – First of all, the most obvious alteration is that some jobs will be replaced as they could be done more effectively by a computer. For example, a store clerk could work in a small stall and sell drinks and snacks, requiring a salary and being imperfect; alternatively there could simply be a vending machine waiting to serve customers automatically, demanding merely an electricity bill.

Distracted PedestriansIcon that expresses a lost job.

To be more arbitrary, a convoluted mental change results in people generally using their phones which causes them to pay less attention to their environment. This is bad news for supermarkets who wish to grab the customer’s attention by offering snacks and other pick-me-up items near the till; since the potential customer is distracted by their mobile phone, the presence of such items may go simply unknown and the item, not bought – thus, revenue is lost.

Website easier to use than socializing

Similarly to the topmost vending-machine topic, this one concerns how a store clerk, or an entire store could be made pointless in certain conditions if a website could pull off the purpose of the store perfectly. If instead of people having to walk into the store and buy what they want, they can just do it via the website, the job for the clerk in the store will be pretty much not optimal and therefore most likely dropped.

Online Banking

Again with jobs being lost due to IT, it also applies to bankers thanks to the invention of online banking. While it makes it easier to bank, a banker’s job could also be made obsolete by the introduction and monopolized usage of online banking.

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