Pokémon Go and Geographic Inequality

 

pokemon_goVox’s Timothy Lee argues that “Pokémon Go is everything that is wrong with late capitalism.” It’s a geographic inequality argument he’s making here. Lee:

Pokémon Go can be a much more affordable hobby than going to a bowling alley or the movies. In fact, you don’t have to spend any money on it. And the explosion of options made possible by online platforms creates real value — the average teenager has vastly more options for games to play, movies to watch, and so forth than at any time in American history.

But the Pokémon Go economy also has some real downsides. One has to do with regional inequality. Nintendo and its partners are rumored to be earning more than $1 million per day from Pokémon Go. That money is flowing away from small and medium cities and toward big technology companies concentrated in big cities.

And obviously Pokémon Go isn’t the only example of this. Amazon is doing something similar in the retail industry, diverting business away from local retailers and sucking cash into its corporate headquarters in Seattle. Companies like Google, Facebook, and Vox Media are drawing ad dollars that previously went to local newspapers and television stations.

I think Lee passes a bit too quickly over the benefits from, as he puts it, “the explosion of options made possible by online platforms.” Indeed, the benefits of digital goods are hard to measure, which is one reason why GDP and inflation statistics may be undermeasuring the rise in living standards. As Alan Cole of the Tax Foundation commented on Twitter: “Consumer surplus from the game is huge and widely distributed.” Duly noted.

As for the inequality/concentration issue, my first thought was the same as Lee’s:

The success of Pokémon Go points to two big areas where policymakers ought to change their approach. One is to relax housing policy to allow more people to move to areas where high-tech products are made. While the average resident of Kansas City or Baltimore might not have the skills to create the next great mobile game, he or she probably could find work as a schoolteacher, nurse, or construction worker in San Francisco or New York — but only if he or she is allowed to live within commuting distance of technology workers.

To add that I would suggest making relocation assistance a bigger part of a full employment agenda. But on the housing front, it just so happens that the Conservative Reform Network just published a policy briefing book on housing from Reihan Salam.

Published in Economics, Entertainment, Science & Technology, Technology
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  1. Misthiocracy Member
    Misthiocracy
    @Misthiocracy

    Michelle Obama wasted how much taxpayer money trying to get people moving with her “Let’s Move!” campaign?

    Nintendo has accomplished the same goal without charging taxpayers a dime.

    • #1
  2. C. U. Douglas Coolidge
    C. U. Douglas
    @CUDouglas

    Misthiocracy:Michelle Obama wasted how much taxpayer money trying to get people moving with her “Let’s Move!” campaign?

    Nintendo has accomplished the same goal without charging taxpayers a dime.

    Heck, with the nature of “free” game apps, they’re getting us to pay for it.

    • #2
  3. Bryan G. Stephens Thatcher
    Bryan G. Stephens
    @BryanGStephens

    Anyone who thinks that money flowing freely is not going the right way, should be written off as being anti-liberty. He might as well be advocating slavery.

    • #3
  4. EJHill Podcaster
    EJHill
    @EJHill

    Pokémon Go has a lot of problems. This is not one of them.

    Its GPS function is basically a child tracker for pedophiles and other criminals.

    • #4
  5. C. U. Douglas Coolidge
    C. U. Douglas
    @CUDouglas

    EJHill:Pokémon Go has a lot of problems. This is not one of them.

    Its GPS function is basically a child tracker for pedophiles and other criminals.

    Considering there’s already been armed robberies at stops, yes, this can be a problem.

    Once again, the writers at Vox are inserting their own pet issues into everything whether it belongs there or not.

    • #5
  6. Aaron Miller Inactive
    Aaron Miller
    @AaronMiller

    Smart shops are attracting business with Pokemon Go. First rule of retail: you have to get them inside before you can sell them anything. If they linger in your store, even better.

    • #6
  7. Jamie Lockett Member
    Jamie Lockett
    @JamieLockett

    Misthiocracy:Michelle Obama wasted how much taxpayer money trying to get people moving with her “Let’s Move!” campaign?

    Nintendo has accomplished the same goal without charging taxpayers a dime.

    Actually the Tax Payers will get money back in corporate and personal income taxes.

    • #7
  8. BD Member
    BD
    @

    I don’t know.  The state of Kansas now has a 3.7 percent unemployment rate and they are opening  a new Amazon fulfillment center there that will create 1,000 jobs.

    But Reform Conservatives don’t like Kansas governor Sam Brownback because he simply cut the top tax rate instead of offering targeted tax credits, as RCs prefer.

    The Reform Conservative plan is to offer a relocation stipend and a “relaxed housing policy” so everyone can move to NYC and live off the runoff from Pokemon Go?

    • #8
  9. Isaac Smith Member
    Isaac Smith
    @

    EJHill:Pokémon Go has a lot of problems. This is not one of them.

    Its GPS function is basically a child tracker for pedophiles and other criminals.

    At my son’s wedding this weekend all of his groomsmen were playing the game – they all played football in high school and most of them in college.  Any pedophile using it to track them is in for a big surprise.

    • #9
  10. Pilli Inactive
    Pilli
    @Pilli

    The fastest way to get “housing reform” in the S.F area as well as the rest of CA is to get rid of many of the governmental restrictions to housing.  Open up land that is now closed to housing.  Let landlords charge whatever rent they can get.  Thomas Sowell has written extensively on this.

    Every “rule” government makes up is an impediment to people doing what they want.  Some rules (Thou shall not kill) are good.  Others are just busy-bodies having their own way.  Those are the rules that need to be removed.

    • #10
  11. DrewInWisconsin Member
    DrewInWisconsin
    @DrewInWisconsin

    Sorry, but when I saw the words “geographic inequality” my eyes rolled so hard they fell out of my head. Hence, I couldn’t read the article.

    • #11
  12. Vance Richards Inactive
    Vance Richards
    @VanceRichards

    Aaron Miller:Smart shops are attracting business with Pokemon Go. First rule of retail: you have to get them inside before you can sell them anything. If they linger in your store, even better.

    That seems to be true . . .

    • #12
  13. DrewInWisconsin Member
    DrewInWisconsin
    @DrewInWisconsin

    I’m suddenly reminded of a Stargate episode where an alien device caused people to see strange creatures that weren’t actually there.

    • #13
  14. Aaron Miller Inactive
    Aaron Miller
    @AaronMiller

    The Pokemon Go mania is impressive right now. But it might be short-lived. Nintendo has thus far failed to compensate for the explosion of popularity with enough dedicated servers to ensure smooth gameplay for all. If they don’t stabilize connectivity quickly, many players will uninstall and the game’s reputation might suffer.

    • #14
  15. Vance Richards Inactive
    Vance Richards
    @VanceRichards

    Aaron Miller:The Pokemon Go mania is impressive right now. But it might be short-lived. Nintendo has thus far failed to compensate for the explosion of popularity with enough dedicated servers to ensure smooth gameplay for all. If they don’t stabilize connectivity quickly, many players will uninstall and the game’s reputation might suffer.

    Hopefully they can find some nice Mom and Pop server farms that are in areas that will provide the much needed Geographic Equality.

    Sincerely,

    Vox

    • #15
  16. 9thDistrictNeighbor Member
    9thDistrictNeighbor
    @9thDistrictNeighbor

    Arlington National Cemetery posted this today on its website and social media:

    “Out of respect for all those interred at Arlington National Cemetery, we require the highest level of decorum from our guests and visitors. Playing games such as “Pokemon Go” on these hallowed grounds would not be deemed appropriate. We request that visitors to ANC refrain from such activity.

    Thank you.”

    That this has to be an official policy is a disgrace.

    • #16
  17. Dan Hanson Thatcher
    Dan Hanson
    @DanHanson

    I read the article, and found it absolutely asinine.  ‘Geographic inequality’?   What nonsense.  Software development is one of the few industries that is almost location agnostic,  and this has become more true as traditional software development has moved to app development.

    The barriers to entry in software development are lower than they are in any other industry.  You do NOT need to be in Silicon Valley to develop apps.  You don’t need venture capital to develop apps.   You don’t need a degree or a license or even a high school diploma. You don’t need connections to powerful people.  This makes app development more accessible than becoming a plumber or a hair stylist.   It’s so accessible that 14 year old kids have made fortunes in app development.

    And let’s look at the trends of ‘geographic inequality’.  More specifically,  let’s look back to 1980,  when I entered the job market.  I lived in a small city in Canada,  and there were simply no opportunities there for someone like me.  I was forced to move to find an education and a career.  If you were a blue collar worker and lived in Detroit or Pittsburgh,  you could get a high paying job in the auto or steel industries.  If you were a poor kid from Appalachia or the Bronx?  Not so much.  If you grew up in a small town in the midwest,  you had to leave your home if you wanted to find opportunities.  Now a kid living in Nebraska can make a living on the internet.

    I went on to become a software engineer.  Back in the day,  a good development language like C++ could set you back $500.  Before the internet,  you needed access to reference libraries to learn,  or you had to spend a fortune on books.  My computer was $1500 in 1980 money.  I was writing database software,  and the database engine I used cost $999 for a development license.  If you needed a hardware debugger,  that could be several thousand dollars.   Every tool, every utility cost money.

    Just letting people know my software existed required taking out ads in computer magazine and journals,  traveling to trade shows, and paying to have brochures and mailers produced.

    Today,  you can get a full suite of languages and tools for building apps and games for free, and you can build your software on a $200 computer.  Then you can put it in the app store, market it online on your own web site,  and not spend a nickel.

    There has never been less ‘geographic inequality’, and other forms of inequality for people who want to write software have declined dramatically.   It has never been easier to earn money in the digital economy than it is right now,  no matter where you live or what resources you might have.

    The article is just click-bait cashing in on the Pokemon-go craze while  pushing the buttons of Vox’s liberal readers.

    • #17
  18. ctlaw Coolidge
    ctlaw
    @ctlaw

    Bryan G. Stephens:Anyone who thinks that money flowing freely is not going the right way, should be written off as being anti-liberty. He might as well be advocating slavery.

    More particularly, serfdom.

    Government seeks to tie the people geographically, prevent their escape, and limit their commercial choices.

    • #18
  19. Bryan G. Stephens Thatcher
    Bryan G. Stephens
    @BryanGStephens

    ctlaw:

    Bryan G. Stephens:Anyone who thinks that money flowing freely is not going the right way, should be written off as being anti-liberty. He might as well be advocating slavery.

    More particularly, serfdom.

    Government seeks to tie the people geographically, prevent their escape, and limit their commercial choices.

    And keep an eye on them. They want peons doing the work so that they can live the life.

    • #19
  20. ctlaw Coolidge
    ctlaw
    @ctlaw

    Lee wrote:

    While the average resident of Kansas City or Baltimore might not have the skills to create the next great mobile game, he or she probably could find work as a schoolteacher, nurse, or construction worker in San Francisco or New York — but only if he or she is allowed to live within commuting distance of technology workers.

    Who here thinks the average resident of KC or Baltimore could be a decent teacher or nurse?

    • #20
  21. Bryan G. Stephens Thatcher
    Bryan G. Stephens
    @BryanGStephens

    ctlaw:Lee wrote:

    While the average resident of Kansas City or Baltimore might not have the skills to create the next great mobile game, he or she probably could find work as a schoolteacher, nurse, or construction worker in San Francisco or New York — but only if he or she is allowed to live within commuting distance of technology workers.

    Who here thinks the average resident of KC or Baltimore could be a decent teacher or nurse?

    I do. Of course, doesn’t KC needs those as well as SF or NYC?

    • #21
  22. Matt Upton Inactive
    Matt Upton
    @MattUpton

    I tell you what the real geographic inequality is: sparse pokecenters in suburban and rural communities. City dwellers can easily farm all the free items they need to continue playing the game while others outside urban centers are compelled–nay forced–to purchase in app items.

    This inequality has shaken my bedrock faith in the capitalist system.

    • #22
  23. David Carroll Thatcher
    David Carroll
    @DavidCarroll

    I have to say @jamespethokoukis has dropped several levels of respect in my eyes by buying into the whole “geographic inequality” gibberish and apparently advocating government programs for worker relocation.  I hope I have misunderstood.

    • #23
  24. Matt Upton Inactive
    Matt Upton
    @MattUpton

    David Carroll:I have to say @jamespethokoukis has dropped several levels of respect in my eyes by buying into the whole “geographic inequality” gibberish and apparently advocating government programs for worker relocation. I hope I have misunderstood.

    I wouldn’t call geographic inequality gibberish when simply identifying that some areas have more, better paying jobs than others. Kevin Williamson writes frequently that the best thing for poor people in poor areas to do is move. James’ policy proposals are more along the lines of reducing government interference that prevent affordable housing, such as stringent zoning requirements.

    • #24
  25. David Carroll Thatcher
    David Carroll
    @DavidCarroll

    Matt Upton:

    I wouldn’t call geographic inequality gibberish when simply identifying that some areas have more, better paying jobs than others. Kevin Williamson writes frequently that the best thing for poor people in poor areas to do is move. James’ policy proposals are more along the lines of reducing government interference that prevent affordable housing, such as stringent zoning requirements.

    Perhaps it is the rhetoric I object to.  “Geographic inequality” sounds like left-speak for “government’s got to do something.”  Of course, regions are different.  Of course, people should consider going where the jobs are.  Of course, I agree that we should reduce government interference with housing.  The Vox article assumes that housing policy prevents people from moving.  That seems far-fetched except to the extent that government housing policy makes housing more expensive.  In the case of California Silicon Valley housing prices, demand is likely a far bigger driver of high prices than zoning or the like.

    However, James’s proposal is squarely in the big government camp.  He says, “I would suggest making relocation assistance a bigger part of a full employment agenda.”

    • #25
  26. DrewInWisconsin Member
    DrewInWisconsin
    @DrewInWisconsin

    Matt Upton:

    David Carroll:I have to say @jamespethokoukis has dropped several levels of respect in my eyes by buying into the whole “geographic inequality” gibberish and apparently advocating government programs for worker relocation. I hope I have misunderstood.

    I wouldn’t call geographic inequality gibberish when simply identifying that some areas have more, better paying jobs than others. Kevin Williamson writes frequently that the best thing for poor people in poor areas to do is move. James’ policy proposals are more along the lines of reducing government interference that prevent affordable housing, such as stringent zoning requirements.

    I think the problem is in using the word “inequality” which tends to connote a demand for government solutions.

    Yes, there are some areas that have better paying jobs than others. But the use of the term “inequality” is right out of the leftist playbook. We are a nation founded on equality of opportunity. The left has turned this into equality of outcome. And much as the New York Times whines that conservatives now own the words “freedom” and “liberty,” I would also like to whine that the left has stolen the word “equality” and perverted it for their own ends.

    • #26
  27. David Carroll Thatcher
    David Carroll
    @DavidCarroll

    I also think that James did not come down hard enough on the Vox meme that Pokemon Go is evil because Nintendo is a big company making money from it, taking money away from middle America.  Why?  Because Nintendo made a product that people like.  And use.  And voluntarily spend money on.  Oh, the humanity!

    So, according to Vox, capitalism is bad, because big companies like Nintendo and Amazon make products and have services that people voluntarily spend their money on.  James meekly suggests “I think Lee passes a bit too quickly over the benefits from, as he puts it, “the explosion of options made possible by online platforms.”  “A bit too quickly?”  Weak tea, indeed, against the Vox anti-capitalism rant.

    • #27
  28. ctlaw Coolidge
    ctlaw
    @ctlaw

    David Carroll: In the case of California Silicon Valley housing prices, demand is likely a far bigger driver of high prices than zoning or the like.

    That’s gibbberish. Demand does not exist in a vacuum. There is supply inelasticity.

    CA has three huge supply issues:

    Much land unavailable federal or state land.

    Prop. 13 creates several inelasticities due to creating a disincentive for an existing owner to sell. They won’t sell for another person to move in at the same density or to increase density.

    Zoning, particularly such that we get low-rise medium density sprawl.

    • #28
  29. DrewInWisconsin Member
    DrewInWisconsin
    @DrewInWisconsin

    ctlaw:

    David Carroll: In the case of California Silicon Valley housing prices, demand is likely a far bigger driver of high prices than zoning or the like.

    That’s gibbberish. Demand does not exist in a vacuum. There is supply inelasticity.

    CA has three huge supply issues:

    Much land unavailable federal or state land.

    Prop. 13 creates several inelasticities due to creating a disincentive for an existing owner to sell. They won’t sell for another person to move in at the same density or to increase density.

    Zoning, particularly such that we get low-rise medium density sprawl.

    Are you suggesting that “Government solutions” are actually problems in disguise?!  Gasp!

    • #29
  30. David Carroll Thatcher
    David Carroll
    @DavidCarroll

    ctlaw:

    David Carroll: In the case of California Silicon Valley housing prices, demand is likely a far bigger driver of high prices than zoning or the like.

    That’s gibbberish. Demand does not exist in a vacuum. There is supply inelasticity.

    CA has three huge supply issues:

    Much land unavailable federal or state land.

    Prop. 13 creates several inelasticities due to creating a disincentive for an existing owner to sell. They won’t sell for another person to move in at the same density or to increase density.

    Zoning, particularly such that we get low-rise medium density sprawl.

    Of course, land is always in fixed supply of some nature.  I was unaware of supply being reduced significantly in the area due to government ownership. And I am unfamiliar with Prop 13.  I stand corrected with respect to Silicon Valley.  It is not surprising that government is fueling housing problems.  The question is whether those government-caused housing problems really make any significant difference preventing workers from moving to where jobs are.

    • #30
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