New fields of investment lay waste to jobs

What are the newest giant global corporations by market capitalisation?  “Google and Facebook  .. together with Microsoft, Amazon and Apple. Facebook’s global revenue has grown from $272m in 2008 to more than $30bn last year. Google’s from $20bn to more than $90bn over the same period.”

“High-profile job losses at Fairfax in recent weeks are part of a worrying trend. More than 2500 journalists have been laid off by Australia’s media companies since 2011, about a quarter of the total. Meanwhile, the ranks of public relations, advertising and corporate affairs professionals have swollen by around 19,000 to 91,000, according to ABS statistics. That leaves about 12 PR people for every journalist in the country.”

American author Jonathan Taplin in his book, Move Fast and Break Things, predicts that “the bloodbath witnessed in print journalism will hit television channels in the next five years. ” But “the astonishing and precipitous decline in revenue paid to content creators has nothing to do with the idea that people are listening to less music, reading less or watching fewer movies and TV shows.”

Journalist for The Australian, Adam Creighton, is giving Australian context to the trend. As a journalist himself, he identifies this particular consequence of the free market as “a disaster — economic, political and social — in a way the collapse of advertising would not be.”

Another point – some political economists talk about general economic crisis originating in the long term tendency of the rate of profit to fall. This rise of new global investments shows capital creating ever new sectors for investment, that replace specific sectors where the rate of profit has fallen, or even cause the rate of profit to fall there, in this case social networking and online media killing print and tv.



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