Facebook as Leading Sector...
Karl Smith:
The Great Stagnation and the Socialvore: For me, and I know I am an in infovore subset, there has been massive deflation. However, the internet as the exclusive playground for infovores may be coming to an end. Social interactions may be the textiles of this new revolution. A product that almost every wants, that is suddenly becoming cheaper....
Suppose I have a hotel which blocks Facebook and is out of range of 3G. How much does this knock off the daily rate versus other hotels with no 3G but do have Facebook access. Even at $5 per night you you would be talking about $5*365*300M = $547B in annual GDP, priced out a zero dollars. That’s roughly 3% of national income, attributed to Facebook alone. Not advertising on Facebook mind you, but the economic value produced for users.
Is it that high? It could be lower but I could imagine it being higher possibly even $10 a night.... And of course, this is in theory just the beginning.
