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The Economics of Time

Does Technology Save Time?

How appliances like washing machines freed household time, why some technologies don't save as much time as expected, and how smartphones changed time use.

New technologies promise to save time. Do they?

Household appliances

  • Washing machines, refrigerators and gas stoves dramatically reduced time spent on chores.
  • Some economists argue these appliances helped women enter paid work in the 20th century.
  • Economist Ha-Joon Chang argued the washing machine changed the world more than the internet.

Why savings can shrink

  • Higher standards: clean clothes daily instead of weekly.
  • New tasks: more gadgets need maintenance.
  • Rebound: saved time filled with more activities.

Smartphones

  • Save time: banking, payments, tickets and maps.
  • Consume time: social media and entertainment. Indians spend several hours a day on phones, according to industry estimates.
  • Attention is fragmented by notifications.

Work technology

Email and messaging speed up communication but can extend work into evenings, blurring boundaries.

The lesson

Technology gives us options; how we use saved time is a choice shaped by norms and design.

The washing machine

A family buys a washing machine. The mother no longer spends hours washing by hand, but the family now washes clothes more often, so some savings disappear.

Thinking new technology always frees time

Higher standards and new uses can absorb the savings.

Key takeaways
  • Appliances greatly reduced household chore time.
  • Higher standards and rebound effects absorb some savings.
  • Smartphones both save and consume time.
  • How saved time is used is a choice.
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