A model of new technology and jobs

A simple closed system, one product mathematical model of an economy is described; its aim is to help discussions of the effects of technological change on employment and related issues like income distribution. The main conclusion of the mathematical exercise based on the model is that an introduction of new technologies, in order to have positive effects on employment, should take place in a situation of supply-demand equilibrium, or even in a situation of some excess demand. The policy implication of this is that governments must take some action since if they are unwise enough to follow laissez-faire policies the prospects of a divided society with considerable levels of unemployment is likely.