The manufacture of innumerable consumer goods from the smallest pin to the largest aeroplane has been made possible by machines.Machines have, in turn, been manufactured by other machines, called capital goods.Lastly, educated and skilled workers invent new machines and innovate new processes, thereby opening more employment opportunities. By increasing the productivity of all factors of production like land, labour, capital, etc..
Read this article to learn about the economic effects of machinery: it’s advantages and disadvantages! Machines have become a part and parcel of modern life.
They are used in factories, offices, houses, construction, transportation, communications, power, etc.
Machinery helps in the development of infrastructure like roads, railways, power, refineries, communications, etc.
The use of machines helps in increasing the production of capital goods, durable consumer goods, and agricultural products.
This prevents their wastages and prices from rising when their supplies are short.
By increasing production, machines raise the incomes of the people and the country.More Employment: In the beginning, machinery replaces labour and there is unemployment. ‘The use of machines increases productivity of labour thereby increasing production, reducing costs and making the goods cheaper. In order to meet this demand, more workers are employed to increase their production.Income will rise which will further increase the demand for goods, thereby necessitating the employment of more workers. Secondly, as machines are made by machines, workers are needed to manufacture new machines.Machines provide a variety of consumer goods like TV, car, refrigerator, washing machine, household gadgets, etc.which make life comfortable and increase the standard of living of the people.The use of machines helps the producer in many ways which tends to increase his production and income.It leads to large scale production, division of labour and specialisation. For example, a person operating a computer or a tractor finishes his work faster than many persons engaged in doing the same work by hands.Machines help in the exploitation of natural resources for the benefit of the people.Natural wealth of rivers, forests, minerals, land, mountains, seas, etc., can be properly exploited and used for productive purposes with machines.For example, the cleaning of the city and the sewerage system by machines, preparing of accounts by a computer, and lifting of heavy loads by a crane have brought relief to workers.They take more interest in their work and their efficiency increases.