Luke is about to drop his history class because he has a major paper due that he hadn’t started yet. It turns out that the topic of this paper is the same topic his mother wrote when she was in college, but she was less than thrilled with her grade on the paper. She asks Luke to turn it in for her to see if she was cheated out of a grade.
In order to get the paper onto a flash drive, Claire had to go through some lengthy measures to convert the file from its original form decades earlier to a flash drive. We see the amount of technological change Claire has experienced in just her lifetime with the multiple computers linked together.
See more: creative destruction, Joseph Schumpeter, technological change, technology
Video cassettes have been replaced by DVDs and streaming services and are slowly becoming an outdated technology. Before getting rid of their VCR, Claire and Phil are going through their VHS collection and watching the movies one last time. Joseph Schumpeter conceived the idea of creative destruction in which new technologies are created at the cost of destroying old industries. From a labor economics perspective, growth in some sectors come at the cost of losing jobs in the industry that is replaced.
See more: creative destruction, Joseph Schumpeter, opportunity cost, tastes and preferences, technological change, technology, tradeoffs
Phil gets the house to himself for a few days and he’s opted to upgrade the technology in the home. He programs everything in the house to be controlled by his iPad, essentially freeing himself to do other tasks that require his attention. He can now turn on lights, the TV, and the fireplace from his device. Long term growth in economies is often fueled by capital investments, which allows populations to be more productive. The same is true at the household level, such that investments in capital improve the productivity of inhabitants.
See more: economic growth, marginal product of labor, productivity, standard of living, technological change, technology
Claire and Jay are visiting a competitor’s business. The competitor wants to buy Pritchett Closets, but Claire and Jay have a different idea. The new company is focused on creating smart closets that can pick outfits for the person based on the weather and their current size. They have great technology, but they don’t have the manufacturing capabilities to fulfill all their orders. Pritchett Closets, on the other hand, has the manufacturing space, but they haven’t invested much in technology. Claire proposes that they merge instead.
See more: acquisitions, industrial organization, mergers, proprietary technological knowledge, technological change, technological knowledge, technology
It is Phil’s birthday and also the day the iPad is being released. Phil is willing to spend his birthday waiting in line to be sure he gets the new iPad, but Claire offers to do it for him. Instead of getting there early, she ends up falling asleep on the couch. When she finally gets to the store, they are all out, and Phil ends up wishing he had handled it himself.
See more: costs, demand, early adopters, gift giving, innovation, nonpecuniary benefits, preferences, tastes and preferences, technological change, technology