The Internet that we know today started to grow during the 1990s. Since then, it has grown at extraordinary rates and we can now do things from our homes that we never though would be possible just a few decades ago. One of the things that the Internet affects is the economy. It doesn't just have an affect on the US economy, but on the global economy. It is easier than ever to communicate with people around the world. According to a study done by the Boston Consulting Group (BGC) on the Internet's impact on the world's largest economies, the United Kingdom's Internet economy comprises a larger percentage of its total economy compared to all countries around the world. For purposes of this assignment however I will mostly be focusing on the affect that the Internet has on the US economy.
Some believe that the Internet actually hurts the US economy. The main reason that people say this is because of outsourcing, or the act of companies shipping jobs to foreign countries because they can get people to do the same work for much cheaper. Outsourcing is only made possible by the Internet. However, almost anyone will tell you that the Internet has a positive affect on the US economy. In 2010 the Internet economy accounted for 4.7% of the total US Gross Domestic Product (GDP). 4.7% of GDP is a bigger share than traditional industry sectors such as information and technical services, construction, education, agriculture and more. In 2016 the BGC projects that the Internet economy will grow to 5.4% of the US GDP, or more than $18.6 trillion.
Obviously the Internet is a major part of the US economy and economies around the world. It is projected to become an even greater part of worldwide economies is developed and undeveloped countries.
Expert Questions:
1.) Are the projections given by the BGC for 2016 reasonable and attainable? Why or why not?
2.) In what specific ways do you believe the Internet can harm economies around the world? The US economy in particular?
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