This is a very interesting topic. You're right to point out GDP is a flawed measurement if what one is interested in is the underlying quality of life. The case for software--a functional good--being produced better for free under the anarchistic conditions of the net has been made already, But I feel like you need to do more explaining where you jump from that to predicting the death and replacement of the advertising, fashion and entertainment industries.

Sure, the distribution side of the entertainment industry is an inefficient monopoly sustained by misguided copyright laws--but I don't see why movies, music, and book production (in traditional form) would be better accomplished anarchistically. Are you predicting the demise of traditional forms of entertainment because business models for its productions won't adapt to the changed conditions of distribution? If so, how do you think the time currently devoted to such entertainment will be spent?

The death of advertising also strikes me as needing more support. After all, advertising has never been about the needs or desires of its intended audience, but rather about finding better ways to manipulate the audience into buying products and services. The internet, if anything, seems to have increased the revenue stream for advertisers.

-- AndreiVoinigescu - 06 Dec 2008