How Technology Effects Modern America

U.S. Wage Trends




The microeconomic picture of the U.S. has changed immensely since 1973, and the trends


are proving to be consistently downward for the nation’s high school graduates and high


school drop-outs.   “Of all the reasons given for the wage squeeze – international


competition, technology, deregulation, the decline of unions and defense cuts – technology


is probably the most critical.   It has favored the educated and the skilled,” says M. B.


Zuckerman, editor-in-chief of U.S. News & World Report (7/31/95).   Since 1973, wages


adjusted for inflation have declined by about a quarter for high school dropouts, by a sixth


for high school graduates, and by about 7% for those with some college education.   Only


the wages of college graduates are up.




Of the fastest growing technical jobs, software engineering tops the list. Carnegie Mellon


University reports, “recruitment of it’s software engineering students is up this year by over


20%.”   All engineering jobs are paying well, proving that highly skilled labor is what


employers want!   “There is clear evidence that the supply of workers in the [unskilled labor]


categories already exceeds the demand for their services,” says L. Mishel, Research Director


of Welfare Reform Network.




In view of these facts, I wonder if these trends are good or bad for society.   “The danger of


the information age is that while in the short run it may be cheaper to replace workers with


technology, in the long run it is potentially self-destructive because there will not be enough


purchasing power to grow the economy,” M. B. Zuckerman.   My feeling is that the trend


from unskilled labor to highly technical, skilled labor is a good one!   But, political action


must be taken to ensure that...