Caveat Emptor...

Technology Review: Project Loon

Topics: Commentary, Economy, Futurism, Jobs, STEM

The expansion of Internet access is motivated largely by profit motives: i.e. the more consumers online, the more products sold, the Internet of Things, etc. I will say I don't think with Amazon Prime, Hulu and Netflix, cable television has much breath left in it. However, the unintended consequences of extended opportunity online seems to be the expansion of inequality, or the "Information Superhighway 2.0." This without the impact of net neutrality.

On page 18 of a very extensive report by the World Bank:

So, the internet can be an effective force for development. But as the Report documents, the benefits too often are not realized, and the internet sometime makes persistent problems worse. Why? The key insight is that for complex occupations, business activities, or public services, the internet usually can make only a portion of tasks cheaper, more efficient, or more convenient through automation. Another portion still requires capabilities that humans possess in abundance but computers do not. Many traditional tasks of an accountant or bank teller are now automated, such as making calculations or processing withdrawals. Others require complex reasoning or socioemotional skills, such as designing tax strategies or advising clients. Likewise, many public services involving provision of information or routine permissions can be automated. But others, such as teaching or policing, need a high degree of human discretion, tacit knowledge, and judgment.

Many problems and failures of the internet surface when digital technology is introduced but the important analog complements remain inadequate. What are these complements? The main ones are regulations that ensure a high degree of competition, skills that leverage technology, and institutions that are accountable (figure O.13).

• When the internet delivers scale economies for firms but the business environment inhibits competition, the outcome could be excessive concentration of market power and rise of monopolies, inhibiting future innovation.

• When the internet automates many tasks but workers do not possess the skills that technology augments, the outcome will be greater inequality, rather than greater efficiency.

• When the internet helps overcome information barriers that impede service delivery but governments remain unaccountable, the outcome will be greater control, rather than greater empowerment and inclusion.

I said so much in Luddites. There is a societal powder keg we've lit, and the fuse is burning.

Technology Review:
Sadly, the Internet Isn’t Making the World a Better Place, Will Knight
Who Will Own the Robots? David Rotman