global effects of the digital age.

The world has had its share of revolutions – some bloodier than others.  Some of the revolutions that have had the greatest impact on humankind and life as we know it were hardly bloody at all; they are the revolutions in which those dethroned are not rulers, but old ways of life.  The Industrial Revolution is among the most important of all revolutions because it has had lasting effects – both positive and negative – on human society.  Because of the changes it brought about, aspects of global economics have been irreversibly changed.  This same process is happening once again, this time as a product of the Digital Revolution.

The Industrial Revolution was born of human genius.  Curiosity and observation led to action, which led to innovation.  The results of that innovation were many, including the steam engine, telegraph, sewing machine, and cotton gin.  These new machines allowed for a new kind of production, one in which people could share the load of hard labor with equipment made specifically for the job.  This led to the implementation of the factory system, and efficiency became forever a crucial aspect of manufacturing just about anything.  Here are two socioeconomic changes brought about by the Industrial Revolution:

1. The standard of living and average income rose substantially.  New estimates released in 1983 by Peter Lindert and Jeffrey Williamson show that real wages in England doubled in 32 years from 1819 to 1851.  They suggest that this was due largely to the effects of the Industrial Revolution.
2. Innovation led to the disruption of certain trades.  For example, textile weavers found themselves replaced by machines that did the same job better, faster, and cheaper.  Their response was, naturally, to try to destroy the machines!  These displaced workers, called Luddites, were in a tough situation.  Change had become their enemy.  That is just one example of how new inventions, while they were great for many things, did make life difficult for those whose expertise was rendered obsolete.  There were some who could adapt, and others who had to start over.

The surge in innovative technology known as the Digital Revolution has already made a tremendous impact on the world, and we are still in the middle of it.  Among the great catalysts in this revolution are the personal computer and the internet.  With the unprecedented connectivity and accessibility that these have brought to the world, we have seen the same two effects mentioned above, but this time on a global level:

1. The global standard of living and average income is rising substantially.  I'm currently reading a book called "China, India, and the United States: The Future of Economic Supremacy" by Peter Rodriguez.  He states that in 1961, Americans had $31 in income for every $1 that Chinese had.  In 2010, the ratio was at $5 to $1.  That is a huge increase in income in only a 40-year period.  Much of that change is due to the shift in manufacturing jobs from the United States to China.  Something similar is happening in other countries, such as India, because that is where American companies are outsourcing.
2. Innovation is disrupting certain trades.  A classic example is that of newspapers.  I'm not saying that newspapers are on their way to extinction in the near future, but they are definitely headed in that direction.  Paper is just not flexible enough.  People no longer have to wait for yesterday's news to be printed, stacked, transported, and thrown on your porch by a kid on a bicycle.  Many newspaper companies are scrambling to find ways to adapt, and those who are not able to keep up are forced out of business.  There is even a website, updated daily, which is dedicated to documenting the demise of the traditional periodical - http://newspaperdeathwatch.com.  Innovation is good for the future, but sometimes bad for the past.  

            I have yet a lot to learn about economics, but it seems to me that both the Industrial and Digital Revolutions have been good for us.  I can't relate to those whose livelihood is in jeopardy because of new technology that is transforming their line of work.  But the positive effects of our new "flat world," as Thomas Friedman describes it, are many.  During the Industrial Revolution, those who wanted factory jobs had to go to the factories.  They had to take what they could, leave the rest, and move to the city.  With the Internet, the factories have moved to the people.  Someone whose opportunities were extremely limited simply because of his or her geographical location and uncontrollable circumstances is now able to gain valuable knowledge and use it to move forward and live better.  50 years from now, perhaps we will more clearly see the effects of the Digital Age and how it has really helped the world move toward global economic equality.