According to Charles Kenny in Bloomberg BusinessWeek (20 June 2013), the Internet is quite a big disappointment–because it “failed to generate much in the way of economic growth.”
While on one hand, the author seems to see the impact that the Internet has had–“it sparks uprisings, makes shopping easier, help people find their soul mates, and enables government to collect troves of useful data on potential terrorists;” on the other hand, he pooh-poohs all this and says it hasn’t generated prosperity.
And in a sense, don’t the facts seem to support Kenny: GDP is still in the 2-3% range, labor productivity growth is even lower, and unemployment is still elevated at over 7%?
The problem is that the author is making false correlations between our economic conditions and the rise of the Internet, which already Jack Welch pronounced in 2000 as “the single most important event in the U.S. economy since the industrial revolution.”
Kenny seems to think that not only aren’t there that many economic benefits to the Internet, but whatever there is we basically squander by becoming Facebook and Youtube junkies.
It’s a shame that Bloomberg BusinessWeek decided to publish such a ridiculous article as its “Opening Remarks,” blaming the failure of the Internet for economic challenges that have been brewing for decades–with high-levels of debt, low levels of savings, hefty entitlement programs based on empty national trust funds, the global outsourcing of our manufacturing base, elevated political polarization in Washington, and various economic jolts based on runaway technology, real estate, and commodity bubbles.
It’s concerning that the author, someone with a masters in International Economics, wouldn’t address, let alone mention, any of these other critical factors affecting our national economy–just the Internet!
Kenny adds insult to injury in his diatribe, when he says that the Internet’s “biggest impact” is the delivery of “a form of entertainment more addictive than watching reruns of Friends.”
Maybe that’s the biggest impact for him, but I think most of us could no longer live seriously without the Internet–whether in how we keep in touch, share, collaborate, inform, innovate, compute, buy and sell, and even entertain (yes, were entitled to some downtime as well).
Maybe some would like to forget all the benefits of technology and send us back to the Stone Age before computing, but I have a feeling that not only would our economy be a lot worse than it is now, but so would we. 🙂
(Source Photo: Andy Blumenthal)