Survival__ Structuring Prosperity for Yourself and the Nation - Charles George Smith [87]
The example that first comes to mind is agriculture; once the scalability of fossil-fuel equipment and fossil-fuel fertilizers was in place via assembly-line production (of tractors, etc.) and industrial-scale chemical plants, then it became inevitable that farm/agricultural labor would fall from 20% of the U.S. workforce to 2%.
In a completely different model with the same results, the entertainment industry is being gutted by the scalability trap of the Web. It now costs almost nothing (to the end user, not the economy as a whole) to bypass the gatekeepers and oligopolies of the recording industry and eliminate the entire staff of the Capitol Records tower (the iconic round building in Los Angeles which calls to mind a stack of old 45 RPM vinyl records).
As one example of this, consider a recent Wall Street Journal piece: Musician Finds a Following Online: Word-of-Mouth on Blogs and Other Sites Attracts Fans -- and a Record Deal:
"In late 2006, Justin Vernon, a musician in Eau Claire, Wis., recorded nine songs while staying at his parents' hunting cabin in northern Wisconsin after a breakup with a girlfriend and his long-time band. He used just a desktop computer with recording software, a three-piece drum set and a guitar.
A few months later, Mr. Vernon posted the songs on his MySpace page, hoping to get some listeners and feedback. He also printed 500 copies of a CD with those songs to sell to friends and fans and send to music bloggers for review.
He got that and much more.
Thanks to the buzz his online tracks generated on music blogs and social-networking sites, Mr. Vernon has played at numerous venues and appeared on the "Late Show With David Letterman." He signed a record deal in October 2007, and his first album, "For Emma, Forever Ago," sold about 87,000 copies through mid-December, with about half of those downloaded online. With a band he formed early this year, called Bon Iver, Mr. Vernon is now playing sold-out concerts across the U.S. and abroad."
Was Justin's creative session in the cabin scalable? No; but his direct access to listeners and potential customers is not just scalable but even exponential. Furthermore, the tools he used to record are scalable; every PC is now a recording studio, with the addition of a decent microphone (which can be borrowed if need be).
Was his recording "work"? Of course it was, but not in the same sense as a paid A&R (Artist & Repertoire) employee in the Capitol Records Tower is "working": Justin wasn't paid, nor was he directed in his work toward some higher corporate function or goal.
And A&R is itself being taken out of the hands of record companies: for instance, Taxi: the world's leading independent A&R company.
I would agree with Kevin's brilliant assessment that "we are about at the place where that tax is going to break the current model of tech innovation and entertainment consumption." For really, what exactly is the zeitgeist of complacency based on but the twin ideas that tech innovations will "save" our lifestyle of 24/7 entertainment consumption?
Is all our economy's "work" necessary or even useful? Examples that spring to mind:
1. We might wonder why the number of generals and other staff officers exceeds the number of generals, admirals, etc. in World War II when the military had 10 times more enlisted personnel.
2. We might also inquire why the Navy's new DD(X) destroyer ship design slashes crew size by more than two-thirds: (source: DD(X) specifications, navy.com):
"Crew: Many of the functions performed by crews on conventional destroyers will be automated on the DD(X). That means a reduction in crew size – 330 fewer sailors than the Spruance class destroyers and 200 fewer sailors than the Oliver Hazard Perry class frigates. The crew will also be able to focus on fighting versus ship maintenance."
Why is reducing crew size critical to the future of the Navy?