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LeoGlossary: Technology

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What Is Technology

It is often looked as a body of knowledge devoted to creating tools, processing actions, and the extracting of raw materials.

This is the result of accumulated knowledge and application of skills, methods, and processes used in industrial production and scientific research. Basically, it is human knowledge which involves tools, materials, and systems. *Technology applied tends to result in new goods.

The progress of many economies is often as a result of technology. We see the rise of the "leisure class" due to innovation enabling us to spend less time on acquiring the basics needed for sustenance. It traditionally aided labor, allowing for greater economic out over time.

Form the earliest days, human took large steps due to technology. The creation of fire allowed for the cooking of foods along with the ability to create artificial heat. This marked a major change from the time before fire.

Tools provide the same results. The earliest one were nothing more than stones shaped but they served particular use cases that made life easier.

Some view technology through the lens of gadget and products. It can also encompass the systems of knowledge and how it is applied.

It is commonly associated with innovation.

Progress of Society

Technology is the core of the advancement of society. It is often the link between technological progress and economic growth are tied together.

Human prosperity is directly tied to our technological progress. Different eras saw advancement that generated more wealth and prosperity. This led to more being moved out of poverty, advancements in medicine, and improved comfort. Innovations such as refrigeration and air conditioning are taken for granted by brought about huge breakthroughs.

The candle, followed by the light bulb, allowed for another noticeable change. Light allowed for the extension of the day, beyond the natural light of the sun. This allowed for longer hours of operation in addition to learning.

All is not smooth. Technology causes disruption which can affect industries. The Luddites were known for their rejection of technology that was going to take their jobs. While they became the poster children for technological denial, they were correct.

Technology can destroy jobs especially in the short term.

Technology Sector

Many often think about technology in terms of markets and investments. The latter part of the 20th century saw the rise of technology companies. These because some of the most powerful corporations in the world, commanding the greatest value from Wall Street.

These firms tend to be associated with gadgets or advanced systems. In this age, they tend to be digital.

Some of them are:

the Internet computers semiconductors social media applications operating systems data storage databases

Due to the large growth rate and revenues, these companies tend to have the largest market capitalization.

Some are:

Apple Microsoft Google Facebook Amazon Tesla

Deflation

One of the characteristics is the deflationary impact it has. Advancements in technology lead to price reduction. For much of history, this was not noticeable since progress was slow.

This change with information technology. Due to observations such as Moore's Law which focused upon the number of transistors on an integrated circuit. The advancement was so quick, with a doubling occurring every 18 months, that the impact was undeniable after a couple decades.

Technology often is accompanies by the democratization and dematerialization of the product or service. One example is music, which were available on physical items as well as being played on them. Now we see music nothing more than a digital file.

Specific Tech

We see a lot of industries have their own form of tech. Medical has Med Tech which is the use of technology in medicine. Construction tech helps with new building methods.

FinTech is probably the best known. Over the last 20 years, this disrupted the financial industry, especially banks.

Many financial services are now available through applications, which reduces both friction and costs. People go online for car loans, mortgages, and to trade stocks, bonds or commodities. Most financial institutions offer applications that their customers can utilize on smartphones.

As industries advance, economies move forward. This drives down costs while making products and services to more people.

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