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" Since 1800, technological advance has been associated with economic growth. The new stuff being built saved labor input, which was then put into the construction of other things. However, the most recent technological advances may not be growth-inducing. As Samuelson puts it, "Gordon sees the Internet, smartphones and tablets as tilted toward entertainment, not labor-saving."" Professor Edward Castronova, who once wrote a book about the exodus to virtual worlds, sees some more evidence of an exodus recession.  He's not just talking about virtual worlds however, but also about your average digital stuff such as tablets and smartphones. It makes us want less 'real' things and so it makes it harder for the economy to grow. One might say, let's measure growth in a different way, taking into account this digital shift. But then again, our social security for instance depends on the economy and the money which is actually earned there.  So will we all hide into virtual worlds to forget the misery of the recession-ridden 'real world'? Or is this speculation very wrong, as the digital evolution is now affecting the 'world of the atoms' in a radical way (think 3D printers, hardware and bio-hacking). 

An academic study co-authored last year by leading virtual world academic Edward Castronova suggests that people get more happiness from being in Second Life than they do from good news in their real life.  Wagner James Au on New World Notes says this is probably also true for other virtual environments, not onlt for Second Life. He also points to the bigger question of the shifting boundaries between virtual and real.  Social media help extend immersive experiences to so-called real world networks. Virtual money is convertible in real money, and solidarity actions for real world issues can start out in virtual environments.  Manuel Castells says we live in a cultural of virtual reality - I think the deconstruction of the boundaries between real and virtual is becoming fairly obvious. Virtual is not some exclusive feature of 3D environments, and reality is ever more being augmented and digitally annotated.

The rise of social platforms and content sharing is driving a major shift in the media industry. Increasingly, people are getting ALL their media through the social web: cute animals, breaking news, personal updates, branded content, humor, jokes, music and entertainment are all mixed together in a single interface.

America is transforming before our eyes, and with our focus on the short-term economic crisis, we are blind to what might very well be the most fundamental economic shift of the past 50 years: the nine-to-five, 40-hour-week job with benefits and some security is fast going the way of the compact disc.

Joseph Stiglitz explains how the Great Depression is caused by the revolution in agriculture. We're facing a similar shift now in the "real" economy.