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It's sort of like the Craigslist argument. Yes, Craigslist makes millions for a few people, but it ruined a newspaper industry worth billions that employed thousands of people around the country.
That's the problem with the free economy. It shrinks the REAL economy. Instagram employs 10 people, the owner got 400 million of that billion dollar price tag. The success of Instagram as a startup helps absolutely nobody. In the old days when startups were companies like Apple or Microsoft, they actually employed people and contributed to the economy.
It's pretty simple, the economy is based on the amount of money flying around. When things are free, there is less money flying around for everybody. It might be nice to get your apps for free and download a free song, but you can't find a job. Outsourcing is very similar. I can start a company with 5 people in a small office, do all my production offshore and make millions even though I really don't contribute anything to the economy.
I'm not saying it's right or wrong, but that's the real economics of it. Yes, a few people can make billions, but it shrinks the economy for everyone else. Of course, that doesn't matter to the GFY geniuses because they are all inventing the billion dollar apps.
Of course, the adult industry was also hit by the "freemium effect", but I guess that's different...lol
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