Bad Religion
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Homework #5
Article 12: The News Economy's "Network Society" Plays by Old-Economy Rules
Briefly state the main idea of this article
The main idea of the article is to introduce the idea that the state of the current economy more closely resembles the "old" economic principles of standardization and economies of scale. The author explains the concept of "network society" in which economic networks spurned by technological advances (i.e. internet) create an exponential opportunity for business relationships. This network has led the economy to expand like it has never before. The author argues that the network is not a novel idea, but rather finds its roots in old economic principles. The most successful firms of today enjoy huge market shares because of their ability to offer standardized products, sell high volumes, and reduce labor costs. The success of large firms of today will bring forth old economic issues to contend with such as antitrust issues, monopolies, and threats to free speech.
List three important facts that the author uses to support the main idea
1) In the mid-1990's, American firms drastically increased their production of standardized products. This has led to consumers purchasing high volumes of products, which brings forth principles of an "old" economy...