Correlation Between Technological Innovation with Economy

Steam Engine invented by James Watt during 1781 mark the first economic boom in our modern society. Work done by utilizing steam with heavy mechanical parts proven to be much more effective and powerful in relative to animal and human strength during that time. It make western civilization to overpower the eastern nation despite civilization in the west was much younger by archaeological records. Productivity increase follow by higher quality of goods could be produced at the shorter time and economical way open up unprecedented wealth to the nation who master the art of steam engine. Larger and larger mechanical meant was now accessible such as steam ship which make goods to be transported internationally faster and cheaper.

Second revolution come with discovery of electricity. Electricity make power transferable and storable in a very efficient and safe manner. Battery made of ceramic jar compound was invented to store energy.  Discovery of direct current by Thomas Edison make electricity bulb possible to make night time a day light. Tesla alternative current make possible of cheap power grid to be installed that able to connect power through out a large region despite differ capacity at many terminal point. A single power pant can feed a whole city. It make a city economy even more prosperous. Giant business organization like General Electric was the product of such revolution.

Third revolution come with democratize of horseless carriage of automobile. Henry ford Model-T mark the history milestone of individual mechanical transportation revolution. Automobile induce development of infrastructure such as road and bridges interconnect cities. It open up the whole new level of communication and trade within a region making new kind of economical boom. Cities make adjacent town become new cities. Accessibility make economy competitiveness within region more efficient therefore increase incentive based economical innovation.

Fourth Technological milestone is telecommunication. Telegraph make information spread faster than ever. Intercontinental and geographical limitation for people to communicate become less obvious. Efficient communication and information exchange make possible cross continental idea exchange further enhance the technological breakthrough which give birth to new economy. Alexander Graham Bell, father inventor of telephone taking another step to make communication through individual more powerful. Business now can be conducted through voices and faster making trade more efficient.

Then coming the age of electromagnetism. Radio and satellite was made possible. As ephemeralization dictated, the invisible force of electromagnetic open up a new level of inter connectivity. It was the cradle of internet and world wide web. It made computer and electronic equipment to be valid for mass produced to utilize the availability of electromagnetic force in the sky. It open up a whole new kind of business never fully comprehended by public. A greatest boom in the history since 1989.

As such are some of the brief correlation of economical boom with discovery of new technological breakthrough. Although, many of technological event such uranium revolution (nuclear energy, from Einstein E=MC^2), quantum mechanism etc, were not mentioned here (no doubt many of the above breakthrough was directly or indirectly from such discovery); the important message from this essay here is to emphasize that, all the historical economy boom and burst is direct correlated to technological event, rather than financial aspect. Economy boom when useful technological innovation is introduced. And Economy become plateau or downward when technological invention stagnant.