For years I have been the rapporteur for the Aspen Institute’s Information Technology Roundtable conference, which every year brings together about 25 technologists, venture capitalists, policy wonks, management gurus, and others to discuss topics of breaking concern. The most recent topic was the “power curve” distributions that tend to result on open network platforms.
This is extensively discussed in my just-released report on the conference, Power-Curve Society: The Future of Innovation, Opportunity and Social Equity in the Emerging Networked Economy. The report notes how a globally networked economy allows greater ease of transactions but also requires fewer workers at lower pay, which tends to aggravate wealth and income inequality. As I write in the introduction to the report:
Although the new technologies are clearly driving economic growth and higher productivity, the distribution of these benefits is skewed in worrisome ways. Wealth and income distribution no longer resemble a familiar “bell curve” in which the bulk of the wealth accrue to a large middle class. Instead, the networked economy seems to be producing a “power-curve” distribution, sometimes known as a “winner-take-all” economy. A relative few players tend to excel and reap disproportionate benefits while the great mass of the population scrambles for lower-paid, lower-skilled jobs, if they can be found at all. Economic and social insecurity is widespread.
The report also looks at Big Data and the coming personal data revolution beneath it that seeks to put individuals, and not companies or governments, at the forefront. Companies in the power-curve economy rely heavily on big databases of personal information to improve their marketing, product design, and corporate strategies. The unanswered question is whether the multiplying reservoirs of personal data will be used to benefit individuals as consumers and citizens, or whether large Internet companies will control and monetize Big Data for their private gain.