Krugman Predicts Demise of Internet….in 1998

If you read Paul Krugman’s editorials for the NYTimes you’ll be familiar with the predictions and economic forecasting the nobel prize winning writer makes. This little blurb over at digital journal shines a light on an economic prediction Krugman made in the late 90s. Here is one of his crystal ball proclamations

The growth of the Internet will slow drastically, as the flaw in “Metcalfe’s law”–which states that the number of potential connections in a network is proportional to the square of the number of participants–becomes apparent: most people have nothing to say to each other! By 2005 or so, it will become clear that the Internet’s impact on the economy has been no greater than the fax machine’s.