Technology and the Economy

As I was hanging out with my brother (who was playing on his iPhone), I wondered to myself- Do technological improvements, especially those that combine many technologies into one, actually hurt the economy? I’m not talking about the fear of robots taking over human jobs and creating unemployment. I’m talking about iPhones and other smart phones that are capable of acting as a CD player, radio, television, telephone, and computer all at the same time. While these smart phones may enhance our standard of living, they could have an adverse effect on the economy. Instead of buying a television, a radio, a CD player, and a telephone, a consumer only needs to buy a smart phone that can do all of these things. Therefore, many radios, televisions, and CD players don’t get bought and those companies go out of business. Also, consumer spending decreases and as a result GDP (GDP= C+ I+ G+ X) decreases. Of course my theory is based on speculation, but it would make for an interesting research project.