Blog: How can we spread the benefits of the digital economy?
If there is one thing that the Cambridge Analytica scandal taught us, it’s that politicians are mostly clueless about the political implications tech and social media bring about for society.
What went largely unreported is that they also don’t have much of an idea about the economic transformation behind Facebook’s success in establishing a business model with near-monopolistic market power in social media, at least for the time being.
It’s part of a shift to an emerging economic model where value creation is driven by intangible assets and investments with huge consequences for rent-seeking strategies and workers.
Given these dramatic changes, policymakers need to update their economic thinking of work in society and find policy solutions that better reflect the unfolding changes of big tech and innovation. That includes shifting the debate on digital from micro to macro and rethinking how the distribution of the economic benefits of digitalisation can be translated into an inclusive growth model.