Reasons to be Cheerful

As Chris Anderson notes, whatever the other one does, the *gift* economy should do well in these difficult times:

# Gift economy: This is driven primarily by people's "spare cycles" (AKA cognitive surplus) and rising unemployment means more spare cycles, sadly. Obviously people still need to pay the rent, so many of these shared contributions are really just advertisements for the contributor's skills. But other contributions will be idle hands finding work while they look for their next job. As a result I think you'll see a boom in creativity and sharing online as people take matters into their own hands. Today, if you're in-between jobs you can still be productive, and the reputational currency you earn may pay dividends in the form of a better job when the economy recovers. Result: Positive

Sharing ideas is even more fun when everyone has less stuff.

How Much is Free Worth?

Chris Anderson bravely tries to put a figure on the value of the "free economy" - those businesses that use free as part of their model. What struck me is the extent to which the ecosystem that has grown up around GNU/Linux dominates everything else in this admittedly back-of-the-envelope calculation: $30 billion out of a rough $50 billion. Which confirms the extent to which open source continues to be the bellwether in this area - the first and still best example of how to make money by giving stuff away.

The Value of Nothing

One of those joining this blog in pointing out the power of pricing at zero is Chris Anderson. His next book is called simply "Free", and he's published a convenient synopsis in the form of an article in his personal publishing vehicle, Wired:

It took decades to shake off the assumption that computing was supposed to be rationed for the few, and we're only now starting to liberate bandwidth and storage from the same poverty of imagination. But a generation raised on the free Web is coming of age, and they will find entirely new ways to embrace waste, transforming the world in the process.

Judging by the article, the book will be highly anecdotal - no bad thing for a populist tome. My only concern is that the emphasis will be too much on the "free as in beer" side, neglecting the fact that the "free as in freedom" aspect is actually even more important.

Free Thinking

I have been accused of being "sniffy" about Kevin Kelly's meditation on eight new scarcities created by free; well, be that as it may. However, I was much more impressed by an earlier essay, pointed out by Chris Anderson, called "Technology Wants to be Free", which seems much meatier to me. It contains lots of concrete examples of how the cost of commodities inevitably tend to zero, and concludes with this important thought:

The odd thing about free technology is that the “free as in beer” part is actually a distraction. As I have argued elsewhere (see my 2002 New York Times Magazine article on the future of music for example) the great attraction of “free” music is only partially that it does not cost anything. The chief importance of free music (and other free things) is held in the second English meaning of the word: free as in “freedom.” Free music is more than piracy because the freedom in the free digital downloads suddenly allowed music lovers to do all kinds of things with this music that they had longed to do but were unable to do before things were “free.” The “free” in digital music meant the audience could unbundled it from albums, sample it, create their own playlists, embed it, share it with love, bend it, graph it in colors, twist it, mash it, carry it, squeeze it, and enliven it with new ideas. The free-ization made it liquid and ‘free” to interact with other media. In the context of this freedom, the questionable legality of its free-ness was secondary. It didn’t really matter because music had been liberated by the free, almost made into a new media.