>If increased productivity (of everyone in a profession due to some new technology) means less people are needed in a given profession, demand for employees decreases and thus wages go DOWN along with product prices.
Demand is elastic. Productivity growth triggers price declines and increased consumption in many industries. Most industries are not static, they continue to invest in technology (the underlying basis for productivity growth). The more investment they make, the cheaper it is to deliver their goods/services and the more they sell. This can push those industries to hire more workers and drive wage growth higher.
Demand is elastic. Productivity growth triggers price declines and increased consumption in many industries. Most industries are not static, they continue to invest in technology (the underlying basis for productivity growth). The more investment they make, the cheaper it is to deliver their goods/services and the more they sell. This can push those industries to hire more workers and drive wage growth higher.