| Introduction | | | | During the last few years, several newspaper |
| I am not an economist, but I do have a question | | | | companies have closed their doors and many |
| regarding the recession in the United States of | | | | newspapers are no longer being printed and |
| America and many other countries of the world: Is | | | | distributed every day in the mornings and in some |
| the World Wide Web (or the 'Web') responsible for | | | | cases also in the evenings. More and more |
| the current state of the economy? | | | | newspapers are going online. Such a migration no |
| Let me explain why I am asking this question. Since | | | | doubt makes production and distribution of news |
| its beginnings in the early 1990s, the number of | | | | more economical, but it also results in the need for |
| people who use the Web on a daily basis has grown | | | | lesser numbers of people to be employed, thus |
| enormously. The Web, with its capabilities of | | | | adding to the problem of unemployment. When news |
| processing data and transactions automatically, and | | | | is produced and delivered online directly to the |
| without human intervention, is also being increasingly | | | | consumer, a number of intermediary jobs become |
| used by corporations, banks, universities, and other | | | | obsolete. The truck drivers who distribute the |
| entities. | | | | newspapers to different parts of large cities are no |
| Shift to the Web Based Operations | | | | longer needed. Neither are the youngsters who for |
| Many major corporations and other entities started | | | | many years in this country have learned the value of |
| shifting their operations to the Web a few years ago. | | | | honest work by getting up early in the morning to |
| Such a shift probably resulted in the loss of many | | | | deliver newspapers door-to-door in their |
| types of jobs that previously required human | | | | neighborhoods. Also impacted are the employees of |
| involvement. Before the large scale utilization of the | | | | companies that manufacture paper. As each |
| Web, human beings processed many transactions | | | | newspaper company shuts its doors, the need for |
| that are now being handled automatically by dynamic | | | | paper decreases and paper manufacturers will |
| web pages. Many people nowadays routinely pay | | | | eventually go out of business and several more jobs |
| their bills online instead of mailing their checks as | | | | will be lost. These are just a few examples of lost |
| people used to, before the days of the Web. In | | | | jobs. I am sure that many more jobs have already |
| those days when people mailed checks to pay bills, | | | | been or will soon be lost as a result of newspaper |
| human beings had to open the envelopes and make | | | | closures since many other companies survive by |
| sure that the payment was recorded and the checks | | | | selling their goods and services corporations that |
| cashed. Online payments are handled automatically. | | | | publish newspapers. Similar ripple effects can be |
| While human intervention may still be needed to | | | | identified in other sectors of the economy as well. |
| monitor online transactions, the number of human | | | | A major automobile manufacturing company, which is |
| beings needed to keep track of such activities is | | | | still barely surviving even after receiving billions of |
| much smaller. Tasks that needed say, 100 people can | | | | dollars from the United States government, recently |
| probably be handled by a much smaller numbers of | | | | announced that it plans to start selling its cars and |
| people as a result of Web-based automation of such | | | | trucks directly to its consumers. It plans to do so |
| transactions. The difference in the number from the | | | | using the Web. The company plans to initially |
| 100 previously employed people to the lesser number | | | | implement its idea in one part of the United States |
| of working people required after automatic bill paying | | | | and will most likely expand the concept to the entire |
| became popular will be equal to the number of people | | | | country if it proves to be successful. Imagine what |
| who lost their jobs and became unemployed. | | | | this transition to the Web will do the network of |
| The Web and Its Impact on Middlemen and | | | | dealerships across this country, many of which are |
| Middlewomen | | | | already hurting financially and closing their doors. What |
| The Web has also reduced the need for people who | | | | about the salesmen and saleswomen that are hired |
| traditionally served the role of intermediaries or | | | | by these dealerships and members of their families? |
| "middlemen." For example, a salesperson used to be | | | | Conclusion |
| the one who sold things to people. But the Web has | | | | The Web is a wonderful invention and it has certainly |
| changed that situation. Those who have something | | | | made in many ways life easier and better for people. |
| to sell can just advertise their products online and | | | | But people also use the Web many other ways that |
| those who wish to purchase goods or services can | | | | are considered socially unacceptable and perhaps |
| do just by visiting various websites of vendors of | | | | even illegal. Examples of undesirable behaviors include |
| such goods and services. There is no more need to | | | | stalking others, posting pornographic images, cyber |
| call many salespersons from several companies to | | | | bullying, stealing identities and disregarding the |
| compare features, services, and costs of various | | | | intellectual property rights of others, to name a few. |
| products. There are several Web-based software | | | | There is certainly a link between loss of jobs and the |
| products and services that compare prices offered | | | | migration of activities and transactions to the Web |
| by various vendors. There is also no large scale need | | | | that were previous conducted by employed human |
| for salespersons to visit offices to try and sell their | | | | beings without the use of the Web. How much did |
| products. Potential customers, who are becoming | | | | the loss of jobs because of the large scale transition |
| more Web savvy with each passing day, can be | | | | to the Web contribute to the state of recession in |
| directed to Web-based catalogs, product information, | | | | the United States and other advanced and advancing |
| as well as online stores where orders can be placed. | | | | countries of the world? I am not an economist and |
| With growing numbers of websites catering to the | | | | do not know the answer to the question, but as a |
| needs of individuals, corporations, universities, | | | | human being with average intelligence, I do see a link |
| governments agencies and other entities, the need | | | | between the Web and the recession. |
| for people who were historically employed in | | | | I urge economists in the United States and other |
| intermediary roles or as middlemen and middlewomen, | | | | countries to study the link between the Web and |
| the ranks of such workers is bound to shrink further | | | | recession and answer my question based on |
| and further. | | | | evidence. |
| Other Employment Losses Attributable to the Web | | | | |