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In these conditions, it makes sense to pump as much money as possible into an early Amazon, Google or Facebook.

However this seemingly happy story has a few important downsides. First, to a large extent these technologies do not create new markets as much as they disrupt or displace old ones, which is one reason why productivity gains are so meager.

No. They displace old industries by introducing technologies and processes that made them more productive. People use them because they provide a higher quality service at a lower price.

And all three of the examples he provided: Amazon, Google and Facebook, have been enormously innovative, and created entirely new markets. I could write a long essay on the markets that had their emergence faciliated by any one of the three companies listed.

What's worrying is that such an obviously misinformed article could be held in such high esteem by so many on HN.




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