The Economics Of Free Isn't Good Or Bad -- It's Simply What Happens
from the understanding-economics dept
That's why it's rather disappointing to see someone complaining that the economics of "Free" is somehow a bad thing. This is written by Alex Iskold, who recently was confused about how free economics actually works. He compounds that problem now by suggesting that it's somehow "bad." The fact is it's neither good nor bad. It's an economic force that is impacting the market. Worrying about it being "bad" is missing the point. Again, it's like worrying that gravity is bad or that Thursday is bad. These are things that are going to happen no matter what, and are generally neutral.
Even worse, Iskold fails to show how it's actually bad on a larger scale. What he does is show how it's bad on a micro scale for certain companies. But, you could make that argument for anything. Automobiles were "bad" for buggy whips. The printing press was bad for scribes. The telephone was bad for telegraph operators. Yet, on a larger economic scale, all of these things opened up more opportunities to the economy. The same is true with the economics that are being discussed these days. Recognizing the inevitability of infinite goods to be offered for free increases the resource pool and opens up many new opportunities to provide goods and services -- and to profit from them.