by David Quach, an economic adviserConcerns about Facebook’s negative effect on the economy – especially an economy on the verge of recession – were raised just recently when 13 Virgin Atlantic staff were sacked for criticising the airline online.The media has also reported on SurfControl’s claim that the site may be costing Australian businesses up to $5 billion a year in lost productivity.If there is so much concern about the detrimental effect of Facebook on the economy, why am I, as an economist, trying to encourage more people to use it?Well, while any adverse effect of Facebook on productivity is detrimental to the economy, economic theory also suggests that the economy could be improved if there were more users. In other words, as long as Facebook isn’t used at work too much, everyone would be better off if more people used it.
http://www.abc.net.au/news/stories/2008/11/27/2431283.htm