The Cost of Free (Labor): Terranova and Anderson

The readings focus on what is "free" in the digital economy. Anderson thinks in terms of free products. Terranova focuses on free labor.

It might make sense to structure class through a debate between Terranova and Anderson, perhaps with groups coming up with points defending and criticizing their positions (from the perspective of each other, yet Lanier is also relevant here in that he talks about lords and peasants of the cloud and Terranova talks about netslaves--which suggests to me a likely paper topic for your papers that will be due on March 11; more on that later).


Terranova:

It might help you to follow her argument if you outline it, thinking of the key point in each section. Notice, like Anderson, she sees in the digital economy "another logic of value" (75). Rather than celebrating it, though, she wants to analyze it. Thus she notes from the outset the blurriness between work and place, production and consumption. Key to her analysis will be some ideas she takes from the Italian "workerist" tradition--specifically, the idea of the social factory and the movement of production from specific industries into and throughout society more broadly.

1. critique of gift economy (free labor is part of contemporary capitalism, not outside it); in fact, the digital economy is a means for capturing social and cultural knowledge--chat, lists, (and social media, though she doesn't mention this--the book was published in 2004);

2.  Lazzarato and immaterial labor (problematizes too quick evocation of knowledge worker, either as exploiter or exploited)

3.  critique of collective minds (another nice link to Lanier) yet reads there the actuality of collective knowledge work (general intellect idea from Italian autonomists)--knowledge labor is collective (Jodi: if this is true, why are the singularizing tendencies so strong?).

4.  the internet is not television: different work structure and rhythm; net: constant updating is necessary--acceleration--also, freeware and open source play economic role (folks voluntarily clean up your code); burnout

Anderson (keep in mind his taxonomy of free):

1. "Freemium"
What's free: Web software and services, some content. Free to whom: users of the basic version. Example--Flickr pro
2.  Advertising
What's free: content, services, software, and more. Free to whom: everyone.
3. Cross-subsidies
What's free: any product that entices you to pay for something else. Free to whom: everyone willing to pay eventually, one way or another. Example: distribute cds to get publicity for/generate interest in concert (not free).
4. Zero marginal cost
What's free: things that can be distributed without an appreciable cost to anyone. Free to whom: everyone.
5. Labor exchange
What's free: Web sites and services. Free to whom: all users, since the act of using these sites and services actually creates something of value. Face recognition, tagging, leaving a trace
6. Gift economy
What's free: the whole enchilada, be it open source software or user-generated content. Free to whom: everyone.

Anderson says that "free changes everything," implying a new economic reality connected with information technologies and networked communication. Is it possible that the new economic reality is actually one of extreme inequality? Also, when thinking about Anderson's argument, keep in mind the high persistent rate of unemployment and underemployment in the US right now. If everything is free, who is going to pay you?