Social media and economics may seem like totally different worlds on the surface, but they share one important characteristic: they are ever-changing in their impact on a society. Regardless of the system in question, a state’s economic infrastructure is layered in its relevance and ability to keep that state functional, and now, social media outlets — through their own rise in relevance — have given many nations a new and innovative way to manage, stabilize, and drive economic activity.
Here are a few ways social media are making an impact on economics.
The relationship between social media and economics is not just one of mutual relevance, but mutual growth as well. In recent years, social media activity has been linked to a spike in both economic output and income — social media use has risen alongside local incomes, reflecting those areas’ overall level of economic development.
However, the aforementioned simultaneous growth is likely more than just a strange coincidence; it is also a reflection of progressive, up-and-coming thinking enacted in these societies. Naturally, social media use is much more prevalent in areas embracing high-tech innovation and and the trending industries that have crafted it. Social outlets are growing and self-innovating on a seemingly annual basis, and this notion is a microcosm of the technological open mindedness exemplified in the world’s most tech-conscious nations.
Additionally, social media activity has been linked to frequent instances of human capital, or “the stock of knowledge, habits, and social and personality attributes.” These high-capital areas were found to contain much higher levels of bachelors-and-up educational experience.
What does this mean?
These correlations, while loose in certain regards, generally and undeniably associate increased social media use with skillsets and approaches ideal for economic growth. Many aspects of the economic process have been streamlined thanks to information-based democratization, for example, giving a variety of new companies a better chance of gaining a niche in the market — subsequently leading to an increase in economic fortification, whether the economy in question is large in scale or modest and associated with a small community.
A thriving economy is typically spearheaded by capable and outgoing thought leaders, after all, and the modern technological landscape is perhaps the biggest challenge yet to our ideological comfort zones. Therefore, it is not surprising that the embracing of this new and constantly evolving concept has been noted in areas of strong economic growth and stability.