The Effects of the Internet on the Economy

Prior to attending our seminar this week, I knew the Internet had impacts on the economy, but I did not realize the true immensity of its power and influence.  The Internet revolutionized our economy, yet not many people of the younger generation realize this.  This lack of understanding makes sense for teens of my age, considering for as long as I can personally remember the Internet has always played a pivotal role in my life.  I only have faint memories of ever going to a blockbuster and interacting with an employee, rather than checking movie ratings on Rotten Tomatoes and picking my movie up at a RedBox or streaming it on Netflix. I barely remember the time when I couldn’t watch anything I wanted online.  I don’t think I ever paid for a CD or read a physical newspaper for more than a few minutes, and the only reason I had the newspaper in the first place was because my parents bought it.  I think I’ve used a taxi once in my life, tending to rather use Uber, and I almost always do my banking online.    It’s been years since I listened to the radio in my car, rather opting to listen to my Spotify playlist on my phone through Bluetooth, and I can barely remember a time when two day shipping was not a thing and when it was more convenient to shop in a store.

While the Internet may seem almost as a constant for people in my generation, the Internet has absolutely revolutionized the economy.  All of the tasks I described above are not capable without the Internet.  Before Redbox and Netflix, you had to travel to your local video rental store to select a movie from a limited assortment.  Before Spotify, you had to pay for individual songs on iTunes, and before that, you had to go to the stores to buy CDs.  Before Uber, you physically had to call a taxi dispatcher and wait what seemed like eons before your ride came.  And before online banking, you had to physically go to the bank to deposit, withdraw, or transfer money.  The Internet has often displaced traditionally brick and mortar stores, due to convenience and its access to the Long Tail.  The Internet can be described as the most convenient form of long distance communication.  Almost everything you can do on the Internet is more convenient than doing it in person, and that is why the Internet has revolutionized our economy.  With the Internet and computing, companies often need less workers to provide a better service than before.  Consequently, while we are currently in an interim, where workers are being displaced from their jobs that are becoming obsolete, our future generations can focus on more important problems facing society.  Instead of checking out a customer at Walmart, a worker can be working on much more meaningful work.  Thus, while the Internet revolution of the economy has currently created greater disparities of wealth in society, as society transitions and adopts to this new economy, I believe our society and the well being of all will advance.