The Null Device

The Happy Recession

Idea of the day: the Happy Recession; the idea that the internet, through driving prices and costs down, will permanently deflate both prices and wages; the post-internet world, it seems, jams econo:
The most pernicious aspect of Internet entertainment is that it’s so easy to measure and so easy to mass-produce. So the moment something on the Internet gets fun enough to be competitive with the real-world analogue, it starts getting relentlessly improved until it’s vastly superior. World of Warcraft soaks up upwards of forty hours per week from serious fans, who pay about $15 per month for their subscriptions. Few other hobbies can consume so much time at such a low cost.
The web makes it easier to access non-traditional employees at much lower salaries. As we argued in our Demand Media analysis, the real story here is that a stay-at-home mom with a Masters in Journalism can write content that is good enough compared to a typical Madison Avenue copywriter, especially when the rate is $15 per article instead of six figures per year. This disaggregation of writing skill means that companies no longer have to hire good writers in order to write 5% good copy and 95% mediocre work; they can outsource the mediocre stuff and relegate the high-end work to a short-term freelancer.
The web offers cheap social status: In the long term, this may have a bigger effect than the web merely making digitizable products cheaper. Social status games drive a huge amount of economic activity: people strive to get into high-paying, high prestige career tracks, to win promotions and attendant raises, to live in the best neighborhoods and send their kids to the best schools. Few status games lack some kind of economic output—people who play sports well below the professional level still get some job opportunities out of it.
One could probably also add a geographical factor to this: in the age of cheap, ubiquitous opportunity, access to economic and cultural opportunities is less dependant on being located in a buzzing metropolis or creative-class hive; after all, if a copywriter or app developer can work from anywhere with creativity, things like music and art scenes (or whatever replaces the post-punk rock'n'roll era construction of the "music scene" in the cultural ecosystem) are centred around blogs rather than physical venues, and one doesn't even need to move to a different place to find like-minded people, there would be less competition for living in more desirable areas, when the price of not doing so no longer includes disconnection from as many opportunities.

There are no comments yet on "The Happy Recession"

Want to say something? Do so here.

Post pseudonymously

Display name:
URL:(optional)
To prove that you are not a bot, please enter the text in the image into the field below it.

Your Comment:

Please keep comments on topic and to the point. Inappropriate comments may be deleted.

Note that markup is stripped from comments; URLs will be automatically converted into links.