The Dot-Com Debacle and the Return to Reason - Hardcover

Nevaer, Louis E. V.

Hardcover

ISBN 10: 1567204155 ISBN 13: 9781567204155

Publisher: Praeger, 2002

Synopsis

The bubble burst. Within months, dot-com once-millionaires were scratching around for jobs. Nevaer proves that the laws of classical economics were never repealed, and that the New Economy was more Old Economy than many people believed. His briskly provocative new book shows how the return of common sense is opening fresh opportunities for wealth creation in badly battered industries-the entertainment industry especially-and offers five keys to understanding the online economy overall. The crash, says Nevaer, was inevitable. Characteristics of the New Economy created market imperfections that led to total failures. The negative effects were not isolated. They hurt the whole economy. The online community also fostered undesired social outcomes-pathological consumer behavior-but the potential for more beneficial gains is still indisputable. Nevaer applies the fundamental theories and ideas of classical economics to the world online, providing a concise understanding of what properly belongs to the Old Economy, and what belongs to the New. He examines the real-that is, sustainable-components of the New Economy centered on five industries: publishing, music, video games, and, to some dismay, gambling and adult entertainment. Meticulously researched and documented, Nevaer's book is an authoritative, probing account for analysts, researchers, students, and scholars. As a study of American culture and society, it is an entertaining read for knowledgeable people everywhere.

About this title

Review

"[c]learly written and engaging."-Harvard Business School Working Knowledge

"İc¨learly written and engaging."-Harvard Business School Working Knowledge

?[c]learly written and engaging.??Harvard Business School Working Knowledge

?[c]learly written and engaging.?-Harvard Business School Working Knowledge

Synopsis

Proof that the laws of classical economics have not been repealed, and that new opportunities for the creation of wealth are already emerging from the debris of the dot-com disaster. It was fashionable to believe that the laws of economics had been repealed, and in the decade of the nineties the result was a spectacular rush of money in search of more money. New rules applied, and if you hadn't made your second million by the time you were 30 you had missed the boat. Then the bubble burst. Dot-comers, so recently rich (at least on paper), found themselves scratching for jobs. Nevaer can now report, wryly, that we are still governed by the laws of classical economics, and in his briskly provocative new book he shows how the return of common sense is opening new opportunities for the creation of wealth in badly battered industries, entertainment foremost among them. He also points out that while the online economy is just a fraction of the total economy, it has important implications for the development and benefit of the whole of American society. Yes, there may still be a New Economy, but it is different from what it was first seen to be.

It is clearly dependent on the real world, and its truly "real"--that is, sustainable--components are centered on five industries: publishing, music, video games, and to some dismay, gambling and adult entertainment. Nevaer says that other industries too will rise from the debacle or be newly created. They too will provide means for personal financial gain, but they will also carry bold new opportunities to advancethe common good. Nevaer's book applies the fundamental ideas and theories of classical economics to the world online. It provides a concise understanding of what properly belongs to the Old Economy and what belongs to the New Economy. Nevaer shows that there are characteristics of the New Economy that create market imperfections, which in turn create market failures. The dot-com debacle may be understood within the framework of classical economics, and can thus be seen as inevitable. Nevaer explains that while the Internet offers the technology to expand existing markets, it also allows market imperfections to proliferate and infect the entire economy, and this in turn has a negative impact on the Old Economy.

Then too, the online economy will also produce undesired social outcomes. Indeed, it facilitates pathological consumer behavior--but the potential for more beneficial gains is still indisputable. Nevaer covers the five industries that make up the maturing, sustainable online economy in detail, with the insights of not only a schooled economist but also an astute observer of American culture and society.

About this edition

• Publisher: Praeger
• Publication date: 2002
• ISBN 10: 1567204155
• ISBN 13: 9781567204155
• Binding: Hardcover
• Number of pages: 336