Online Piracy: The Exaggerated Effect on the Economy
2012
Freakonomics provides two significant problems with the data behind online piracy’s effect on our economy based on what supporters on SOPA and PIPA want us to believe. As with all data, it is very simple to hide behind numbers that are hard to prove valid:
These numbers seem truly dire: a $250 billion per year loss would be almost $800 for every man, woman, and child in America. And 750,000 jobs – that’s twice the number of those employed in the entire motion picture industry in 2010.
The problems?
First, that these numbers “cannot be substantiated or traced back to an underlying data source or methodology,” which is polite government-speak for “these figures were made up out of thin air.”
Second, …
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