The mirage of the ‘new economy’

Date posted: Friday 28 March 2014

The current Internet boom and the new economy, centered around social networking, e-commerce and online gaming, has not produced a significant productivity boost for the economy and likely will not in the future. The boom is mostly about redistributing existing demand from offline to online. A sustainable economy is based on businesses that make better products at lower costs over time. An economy full of colorful middlemen and no unique or high-value products cannot go far.

(The Corner)

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