A Wall Street View on Social Media

Is all new technology progress? Interesting question. I guess you will different answers, depending on who you ask. But if you ask hedge fund billionaire, Paul Singer, at Elliot Management on Wall Street, you’ll get the following answer:

“Ask yourself the following set of questions: Do people seem better informed today in the developed world? Smarter? Is the discourse more sophisticated? The answer is a resounding “no” to all those questions.”

Elliot Management

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Well, if the new communications technology is not progress, what is it then? I do not dare to answer that question. Still, Elliot Management makes some valid points in their latest letter to investors.

The following extract is published by Wall Street blogger Zero Hedge. To read the full letter you’ll have to subscribe to it personally.

“Some technology represents unquestioned progress, despite causing real challenges to the employment prospects of citizens who are made redundant. For example, recent advances in science and medicine have merely scratched the surface in terms of enhancing our ability to find cures for diseases in an increasingly focused way at sharply diminished cost. Also, the technology of moving people and goods in vehicles and organizing their movement on roads contains tremendous opportunities for cost and energy efficiencies, as do the areas of resource extraction, the development of alternative energy and the efficiency of food production. These are just a few obvious and impactful areas in which technological progress has lots of headroom for human betterment.”

“On the other hand, some technological progress is not really progress at all. Innovations in the technology of communications, including social media, provide increasingly powerful and robust platforms to disseminate information. Unfortunately, these same increasingly powerful and robust platforms are also used to spread information that is untrue, and to package information in tiny bits of faux-knowledge that (because of their sheer volume) leave little room for neither more comprehensive reading nor discussion and contemplation. This fact reinforces our view that young people need to be taught the basics as early as possible – of history, political science, philosophy and civilization. In the absence of that grounding, all of these Twitter and Facebook bits alight on a population that lacks the tools to sort or analyze what they are reading while scrunched over their Androids. (Interesting word, Android; maybe in a thinly-veiled joke, it is meant to describe the hooked users and not the device…)”

“The technology of communications also democratizes news and opinion. Although this development may seem positive at first blush, it also has some powerful negative aspects. Whatever one thinks about the “mainstream” media’s biases, there is at least a set of standards and professional codes of conduct that are more or less followed by established media outlets. Writers are edited, and editors seek to protect franchises against irresponsible communications. Bloggers, by contrast, do not really have to adhere to any such constraints, and making them hew to any standards of professional responsibility is difficult at best. The “blogosphere” effectively makes the dissemination of news and opinion a kind of dense windy fog.”

(h/t: zerohedge.com)

Socially related:

New Research: Social Media Amplifies Irrational Behavior

The Social Media Personality Disorder

The Power of Social Media Is Nothing To Joke About

The Invisible Footnotes of EU’s Media Control Directive

Welcome to Watergate Hotel, Mr. President

The (Very) Small Difference Between Influence and Manipulation

 

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One thought on “A Wall Street View on Social Media

  1. Reblogged this on EconoTwist's and commented:

    Well, if the new communications technology is not progress, what is it then? I do not dare to answer that question. Still, Elliot Management makes some valid points in their latest letter to investors.

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