Amish Paradise

“Amish Paradise,” a parody song by Weird Al, describes the life of an Amish man. Throughout the song, it highlights the life and work of the Amish which hasn’t changed much since the seventeenth century. As highlighted in the slides that accompany the song, basic economic concepts such as the production possibility curve, opportunity cost, still apply. However, unlike our modern economy, the Amish economy is effectively not growing. This is due to the lack of technology use.

STATS

  • CONCEPT: Technology and Growth
  • CLIP LENTH: 3 minute, 18 seconds.
  • TYPE of MEDIA: Music Parody

BEFORE SHOWING THE CLIP:

Ask the students if they think the robotic assembly line is a net positive.  This will spark a debate among the students as many will have heard that this has caused job losses.  If this does not cause debate, inquire about “AI” and the replacement of office workers; some students react more strongly to this concept as it could potentially impact their future employment.  Also ask the students to consider if (1) all forms of technological growth are the same and (2) who benefits from technological growth.

FOLLOW-UP DISCUSSION AFTER SHOWING THE CLIP:

After playing the clip is the perfect opportunity to explain that the Amish lifestyle is the natural extension of an economy without technological growth.  Moreover, technological growth comes in many forms.  Technology can lower the cost of production, change the input mix, and often has positive spillovers for society.

Consider the invention of dwarf wheat by Norman Borlaug.  This resulted in a higher yield product that is credited with saving over a billion lives from starvation.  However, it did not change the input mix in any obvious way.  Fields still had to be worked with roughly the same mix of labor and capital as before – they just produced more (of course, other aspects of the “Green Revolution” did result in a change in input mix).  Technological change does not necessitate job losses.

Of course, some technological changes do change the input mix.  The robotic arm does reduce the need for labor.  However, the jobs that remain require more skill, and therefore higher pay, than those that existed from before.  Of course, often the largest technological benefits are not enjoyed by the inventor.   Elisha Otis invented an elevator that was safe for humans to ride.  Yes, this resulted in elevator sales.  But, more importantly it allowed buildings to be much taller. This created urban density which has a multitude of positive economic effects.

TAKEAWAY:

  • Technology improves the use of inputs which allows economies to grow.

  • Technology can result in changes in inputs, but it doesn’t have to.

  • Technology produces positive spillovers to the rest of the economy.