The Irony of High Tech

Technology is a major foundation of national power. Its uses are obvious. But the path from innovation to obsolescence is frequently less obvious.
Technologies that define an era usually come from a major geopolitical power. Roman engineering, for example, helped shape the Mediterranean world. British technology created and sustained the industrial revolution. These empires could absorb the cost of innovation because they had the money to do so and because they knew it would only reinforce their power. And because technologies are meant to reinforce power, even the most benign were invented for military purposes.
The Origins of the iPhone
Consider the iPhone, an invention of Apple, the genius of Steve Jobs, and a helpful, hip, and harmless product. Or so it would seem.
The centerpiece of the iPhone, as is the case with so many electronics today, is the microprocessor. The microprocessor was the fruit of the labor of a variety of scientists and engineers who were sponsored by the US government, which needed a lightweight computer for missiles, aircraft, and other systems. The technology quickly found use in the F-14 fighter aircraft, intercontinental ballistic missiles, and submarine-launched nuclear missiles.
Fast forward to 1985. General Dynamics, known at the time as GTE, helped the US Army create an advanced network for a device invented some 12 years earlier. The device was the cellphone, which would face its first true test in Operation Desert Storm. The Army needed a reliable wireless communications system that could be easily deployed, and the cellphone fit the bill.

This post was published at Mauldin Economics on JUNE 19, 2017.