perelgut (01/20/83)
Introduction
This article discusses a new model of global economics
called "The Information Economy". Many ideas are taken from
an article describing Yoneji Masuda (a Japanese economist).
The article, by Robert Arnold Russel, appeared in a monthly
column in the November 1982 issue of Executive.
The premise is that classical economics is limited by
material productivity in a world where resources are running
out. The new school of economic thought is based on infor-
mation productivity instead of industrial productivity.
Brief Review of Theories
Classical economics is based on the Renaissance, humanism,
and the development of material productivity. Material
values are the basis of this economy. Material value comes
from the production, sale and consumption of useful goods.
Useful goods are produced by applying scientific rules in
order to turn natural resources into products.
Classical economics is characterized by free competition of
private enterprises and the priciple of profit-making. Mass
production leads in turn to democratic ideas and trade
unionism as well as high mass-consumption societies in
industrially advanced countries.
However production of large quantities of goods produces
wastes, causing pollution and environmental disruption as
well as causing shortages of natural resources. This
imposes a fatal limit on classical economics
Information economics is based on three pillars: information
productivity, a spirit of globalism, and the desire of indi-
viduals, groups, communities, and nations to improve their
knowledge and awareness through purposeful action (in brief,
self-actualization.)
The drive for self-actualization turns knowledge and infor-
mation into wealth since people need to consume it as a pro-
duct in the process of self improvement. Self-fulfillment
is a growing trend (See References) Instead of fragmenting
society, as some people fear this trend may do, communica-
tions technology will create increasingly powerful interest
groups (such as this network?). In this way the drive for
self-fulfillment becomes a moral action, driving the economy
forward and tying communities together.
We are now aware that the industrial economy has created a
disharmony due to problems with the Third World and pollu-
tion and the environment. The non-polluting information
economy will restore the harmony. Development of the Third
World is possible through inexpensive information technology
such as hand-held computers and cheap satellite communica-
tions and broadcasting. The Third World looms, not as a
problem, but as a potential market of three billion consu-
mers. Thus the second pillar, the spirit of globalism.
The third pillar of post-industrial economics is information
technology. "The computer is thousands or hundreds of
thousands of times superior to man's brain in information
productivity. [For the flamers out there, this is not a
comment on potential, just a statement of perceptions. -
sgp] The increase of material productivity made possible
through the invention of steam engines and machinery in the
Industrial Revolution was in the order of hundreds of multi-
plications at most." Computers will also become able to gen-
erate information and knowledge.
Information Economy Summed Up
Information economics has the spirit of globalism and the
ideas of coexitentialism as its idealogical support, and its
technical basis in the development of information produc-
tivity. The basic concept of economy lies in the realiza-
tion of time-value (self-actualization) which is made possi-
ble through the production, distribution and consumption of
information (much like the definition of material values).
In the past, production of information was carried out by
man's intellectual thinking. Technical advances have
resulted in a remarkable rising information productivity.
Soon electronic production of information will enter a stage
of mass production which will pass into a stage of mass
sharing of information through public utilization of comput-
ers. With the onslaught of home computers costing only a
few hundred dollars this is already taking place.
Further, computers will contribute to the development of
pollution free and resource saving technologies and will
promote ecological technologies and systems. Masuda's hope
is that this will lead to an era of coexistence of man and
nature on the globe as a spaceship.
References
Some references stressing the predominance of the drive for
self-fulfillment as a social characteristic of this age:
Daniel Yankelovich, "New Rules"; Christopher Lach, "The Cul-
ture of Narcissism"; and John Kettle, "The Big Generation".
Yoneji Masuda's major work is "The Information Society". It
is available from The World Future Society/4916 Saint Elmo
Avenue/Bethesda, Maryland/ 20814/U.S. for $12.50(US). A
shorter version of his theories was published under the
title "The Conceptual Framework of Information Economics."
--- Stephen Perelgut ---
--- decvax!utzoo!utcsrgv!perelgut ---fair (01/22/83)
I can see at least two problems with the view presented in the article posted to the net: 1) To consume information, one must, at the very least, be literate, and (to make the most of it) highly educated. Most of the countries of the third world have \very/ poor literacy rates, and usually no significant percentage of the population is educated in any real sense. 2) The third world is still going to compete for the natural resources which are consumed by material production (in large part by the nations of the first world). Europe and North America continue to consumee the Lion's share of the world's natural resources, and one day not too far off, the third world will demand its fair share. One more thing: I was confused (or maybe the author wass confused?) by the term `mass production of information'. What does \that/ mean? Erik E. Fair ucbvax!fair fair@Berkeley
soreff (01/22/83)
Does Masuda propose that information products will replace housing, food, energy, transportation, and so on? I could see how the information intensive products might continue to grow in sales volume when the conventional markets have saturated, but this only happens AFTER the bulk of the population is well-housed, well-fed, etc. I don't see why the non-information products sector should shrink in industrialized nations. I also don't see why the existence of information products will make satisfying undeveloped nation's preferences any easier. Calculators don't substitute for indoor plumbing. -Jeffrey Soreff (hplabsb!soreff)
goutal (01/26/83)
Yes, but how do you eat information? I don't mean metaphorically; I refer to extracting physical nutrition therefrom.