http://www.nytimes.com/2014/01/07/opinion/nocera-will-digital-networks-ruin-us.html?ref=opinion&_r=1

> The most important book I read in 2013 was Jaron Lanier’s “Who Owns the 
> Future?”


....

> On the contrary: “What I came away with from having access to these varied 
> worlds was a realization that they were all remarkably similar,” he writes. 
> “The big players often gained benefits from digital networks to an amazing 
> degree, but they were also constrained, even imprisoned, by the same 
> dynamics.”
> 
> Over time, the same network efficiencies that had given them their great 
> advantages would become the instrument of their failures. In the financial 
> services industry, it led to the financial crisis. In the case of Wal-Mart, 
> its adoption of technology to manage its supply chain at first reaped great 
> benefits, but over time it cost competitors and suppliers hundreds of 
> thousands of jobs, thus “gradually impoverishing its own customer base,” as 
> Lanier put it to me.

....

> There are two additional components to Lanier’s thesis. The first is that the 
> digital economy has done as much as any single thing to hollow out the middle 
> class. (When I asked him about the effect of globalization, he said that 
> globalization was “just one form of network efficiency.” See what I mean 
> about a universal theory?) His great example here is Kodak and Instagram. At 
> its height, writes Lanier “Kodak employed more than 140,000 people.” Yes, 
> Kodak made plenty of mistakes, but look at what is replacing it: “When 
> Instagram was sold to Facebook for a billion dollars in 2012, it employed 
> only 13 people.”
> 
> Which leads nicely to Lanier’s final big point: that the value of these new 
> companies comes from us. “Instagram isn’t worth a billion dollars just 
> because those 13 employees are extraordinary,” he writes. “Instead, its value 
> comes from the millions of users who contribute to the network without being 
> paid for it.” He adds, “Networks need a great number of people to participate 
> in them to generate significant value. But when they have them, only a small 
> number of people get paid. This has the net effect of centralizing wealth and 
> limiting overall economic growth.” Thus, in Lanier’s view, is income 
> inequality also partly a consequence of the digital economy.
> 
> It is Lanier’s radical idea that people should get paid whenever their 
> information is used. He envisions a different kind of digital economy, in 
> which creators of content — whether a blog post or a Facebook photograph — 
> would receive micropayments whenever that content was used. A digital economy 
> that appears to give things away for free — in return for being able to 
> invade the privacy of its customers for commercial gain — isn’t free at all, 
> he argues.

....

> Still his ideas about reformulating the economy — creating what he calls a 
> “humanistic economy” — offer much food for thought. Lanier wants to create a 
> dynamic where digital networks expand the pie rather than shrink it, and 
> rebuild the middle class instead of destroying it.


-- 
Kim Holburn
IT Network & Security Consultant
T: +61 2 61402408  M: +61 404072753
mailto:[email protected]  aim://kimholburn
skype://kholburn - PGP Public Key on request 




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