Last September e-commerce giant Amazon acquired Twitch, a live-streaming video company, for $970 million. Not long ago a new billion-dollar company would have been a boon to job creation. Yet Twitch employs just 170 workers.
The story of Twitch illustrates an important lesson about the digital economy: at the same time it has generated enormous wealth for shareholders and entrepreneurs, it has resulted in few new jobs. In fact, the digitization of the economy may have far-reaching implications for the future of growth and employment.
Frey, C. (2015). 'How to Prevent the End of Economic Growth'. Scientific American, 1st January 2015.