Economy analysis - Assignment Example

s Economy Analysis 7th March Critique of Richard Posner’s Article on the Demise of Bookstores and Libraries Richard Posner’s article titled “Are Bookstores and Libraries Doomed by Digitization? Posner” discusses the impact of digital commerce on the publishing industry. He observes that the process the industry is going through is what Joseph Schumpeter called, “creative destruction” (Posner). This is the destruction of existing technologies and systems by the emergence of newer and more efficient ones.

Posner makes three main points in his article. The first one is that Amazon, and other online vendors are responsible for the demise of Bookstores and libraries because they have changed the way people access products, including books. People find it more convenient to order books from online vendors than to go out to bookstores to look for books the way they did before the digital revolution. The second point is that in addition to Amazon, there are now many avenues through which people access eBooks, hence the loss of the need to visit libraries.

The final point he makes is that copyright laws are lagging behind, since they were developed in an era where the current potential for digitization did not exist. It is important to have a balance between access to published material bearing the cost of production in mind, and to retain the “incentive to create” for writers (Posner). There are two key strengths in Posner’s article. The article communicates very clearly the relationship between the demise of the bookstores and libraries in relation to the emergence and development of the digital revolution.

The issues in it focus on the purchasing behavior of individuals and how the internet is affecting consumer behavior. The second strength of the article is that it identifies the legal problems that existing copyright laws have which will only make the process more difficult to manage. The article argues that there is need for action to update existing laws to make it easier for creators of literature to enjoy more protection because of the increasing cost of policing the internet to prevent online piracy.

The key weakness of the article is that it does not offer any radical solution, but struggles to find a way around the existing problems based on the current laws. It does not pay attention to the fact that it is now almost impossible to stop online piracy by using legal means only. The internet is universal, and it is almost impossible to start developing laws which every country will accept. This is because different countries derive different benefits from the internet hence the laws may impede local economic objectives.

For instance, users in the third world can easily access some materials online which they cannot afford to buy. These materials include information that can transform their societies such as low cost housing plans, Do-It-Yourself kits, books, and audio content among others. If copyright laws bar access to these materials, then it will affect the economic growth, at least at the individual level, of the developing world. This article is very significant because it provides a unique perspective on the effects of digitization and globalization on the world.

Businesses must adapt, or else they will face the prospects of extinction (Gilson). Companies that fail to restructure to take into account the digital revolution stand to lose their competitive advantage. Works CitedGilson, Stuart. Creating Value Through Corporate Restructuring: Case Studies in Bankruptcies, Buyouts, and Breakups. New York, NY: John Wiley and Sons, 2010.Posner, Richard. "Are Bookstores and Libraries Doomed by Digitization? Posner." 3 March 2012. The Becker-Posner Blog. 7 March 2012 .