Audible Audio Edition
Listening Length: 7 hours and 38 minutes
Program Type: Audiobook
Version: Unabridged
Publisher: Audible Studios
Audible.com Release Date: January 10, 2011
Language: English
ASIN: B004INST2Q
Best Sellers Rank: #100 in Books > Business & Money > Economics > Interest #6941 in Books > Audible Audiobooks > Business & Investing
There were economic crises long before the Internet existed, but the Internet has created an environment where crises are more frequent and more powerful. Like a strong wind blowing over a wildfire, the hyper-connectivity fostered by the Internet exacerbates, expands and accelerates small incidents, turning them in to major events.This is the theory that drives William Davidow's latest book, "OVERconnected: The promise and Threat of the Internet." Davidow argues that economic bubbles, manias and crashes as the result of thought contagions-- ideas that spread like diseases. The more highly connected the environment, the faster and further ideas can spread. If an idea spreads far enough it may begins self- reinforcing and spin out of control, driving the economic system faster and faster in one direction. This is known as a positive feedback loop.In the past, the government or cultural institutions of a society could intervene to slow or stop a run-away feedback loop. But in the current over-connected environment, changes are so rapid that these institutions are overwhelmed and unable to cope. As a result, the entire global economic system is more crises prone than ever before.Davidow provides a dozens of historical examples of how positive feedback loops create economic crises. He then explores how the interdependencies spawned by the Internet contributed to the 2008 economic meltdown in Iceland and the United States. He briefly touches on how the Internet has threatened consumer privacy, enabled the outsourcing of American jobs, and destroyed the printed newspaper industry. And finally, he proposes several possible solutions to lessen the economic risks associated with over-connectivity and the Internet.
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