lab 2 readings
Creative Destruction and Innovation
Creative Destruction: The process of replacing old economic structures with new ones to spur innovation.
Silicon Valley Consensus: Prioritizes dynamic efficiency and entrepreneurial incentives over static stabilization. It advocates for minimal intervention and strong property rights for innovators.
Productivity and Growth
Productivity is slowing despite digital advancements. Under-commoditized services (e.g., Google, Wikipedia) replace traditional output without clearly reflecting market gains.
Stagnation in the 2010s was fueled by the 2008 financial crisis and chronic underemployment.
Destructive Creation: A techno-economic paradigm that disruptions socio-economic stability, creating systemic fragility.
The European Context
The EU's global GDP share decreased from in 1980 to in 2023, while the US share remained more stable (declining from to ).
Despite advanced regulations, the EU lacks the IT innovation and web service concentration found in the US.
Erosion of Democracy and Public Sphere
Polarization: Economic systems favor wealth controllers, creating a divide that complicates public interest dialogue.
Hollowing of Democracy: Market pressures and elite cooptation reduce public agency (Nancy Fraser).
Digital Limitations: Initial hopes for digital democracy have been replaced by algorithmic feedback loops that limit deep discourse.
Techno-feudalism
Definition: Socio-economic dynamics where power is based on domination and digital asset control rather than mutual contracts.
Rent-Seeking: Wealth is captured through the control of digital assets (rent) rather than increasing production.
Predation: Competitive growth is replaced by monopolistic predation and the centralization of wealth in a digitally empowered elite.