Tuesday, February 17, 2009

Initiating a Culture of Compensation

Now we see the real problem with the post industrial economy. In order to have a market economy you must be able to establish value for value exchanges in which money is used as a medium of exchange. For manufacturing and service industries doing this is easy. In an information "economy" where information is transmitted through electronic means doing this is more difficult. Newspapers never sold information, they sold the paper on which the information was presented. The same thing with magazines. So long as entertainment could obtained only in confined spaces such as theaters it was possible to restrict access to paying customers.

Over the air radio and television went to either a advertising based business model or were supported through government and private donations because it was was impossible for broadcasters to restrict access to paying customers. The internet has the same problem. This is why most internet businesses are failures. In order to have a successful business you must find some way to make you customers give you money for the goods and services you supply.
Read the Article at HuffingtonPost

There is much more to this than can be said in 250 words. The advent of an information based economy puts the whole idea of markets into question. In order to have a market based economy you must have value for value exchange. No value for value exchange means no markets. At the same time putting up restrictions around information makes the growth of an information based economy more difficult. If everyone requires payment of information then only the rich will have full access to all the information they need. But if information is free there can be no such thing as an information economy. Which means it may not be possible to have both a free market economy and an information economy. We may have to choose between these.

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