Technological Innovation and Economic Heuristics

Technological innovation does not always lead to technological unemployment as popularly believed because despite advanced technology, unemployment rates are at historic lows. Another economic heuristic states that technological innovation reduces costs, enabling increased consumption and in turn creating new jobs, but historical evidence like in the 1820s contradicts this. A third possibility is that technological transformation can lead to job polarization, where some benefit while others are pushed into low-wage jobs, as observed in the digital transformation era since the 1980s, mirroring the early industrial revolution's impact on certain sectors like the Weavers.