” Since 1800, technological advance has been associated with economic growth. The new stuff being built saved labor input, which was then put into the construction of other things. However, the most recent technological advances may not be growth-inducing. As Samuelson puts it, “Gordon sees the Internet, smartphones and tablets as tilted toward entertainment, not labor-saving.””
Professor Edward Castronova, who once wrote a book about the exodus to virtual worlds, sees some more evidence of an exodus recession.
He’s not just talking about virtual worlds however, but also about your average digital stuff such as tablets and smartphones. It makes us want less ‘real’ things and so it makes it harder for the economy to grow. One might say, let’s measure growth in a different way, taking into account this digital shift. But then again, our social security for instance depends on the economy and the money which is actually earned there.
So will we all hide into virtual worlds to forget the misery of the recession-ridden ‘real world’? Or is this speculation very wrong, as the digital evolution is now affecting the ‘world of the atoms’ in a radical way (think 3D printers, hardware and bio-hacking).
via Diigo http://terranova.blogs.com/terra_nova/2012/10/more-on-the-exodus-recession-technology-entertainment-and-our-economic-doldrums.html