The Information Economy

Abstract

The term “information economy” first came into widespread usage during the 1960s and 1970s to identify a major transformation in the postwar American economy in which manufacturing had been eclipsed by the production and management of information. However, the information economy first identified in the mid-20th century was one of many information economies that have been central to American industrialization, business, and capitalism for over two centuries. The emergence of information economies can be understood in two ways: as a continuous process in which information itself became a commodity, as well as an uneven and contested—not inevitable—process in which economic life became dependent on various forms of information. The production, circulation, and commodification of information has historically been essential to the growth of American capitalism and to creating and perpetuating—and at times resisting—structural racial, gender, and class inequities in American economy and society. Yet information economies, while uneven and contested, also became more bureaucratized, quantified, and commodified from the 18th century to the 21st century. The history of information economies in the United States is also characterized by the importance of systems, networks, and infrastructures that link people, information, capital, commodities, markets, bureaucracies, technologies, ideas, expertise, laws, and ideologies. The materiality of information economies is historically inextricable from production of knowledge about the economy, and the concepts of “information” and “economy” are themselves historical constructs that change over time. The history of information economies is not a teleological story of progress in which increasing bureaucratic rationality, efficiency, predictability, and profit inevitably led to the 21st-century age of Big Data. Nor is it a singular story of a single, coherent, uniform information economy. The creation of multiple information economies—at different scales in different regions—was a contingent, contested, often inequitable process that did not automatically democratize access to objective information.