Social Media and Socioeconomics

Social media has changed much about the way the world works recently, and its impacts have been felt across the spectrum of disciplines. From the perspective of socioeconomics (the study of how economic activity affects the form and function of societies, and vice versa), the proliferation of social media is a new phenomenon. Still, there are already some trends that have become clear through recent research, and many theories are emerging about how social media is shaping the socioeconomic landscape.

The “Digital Divide”
Even before social media showed up as a major force, it was already clear that the social, economic, and political life of the world was increasingly moving online. It was also evident that those who did not move with it would miss out on opportunities ranging from employment to education to civic participation. Unsurprisingly, those most at risk of being left behind were people of lower SES (socioeconomic status).

Recent studies suggest SES is itself a factor in how people use social media. University of Virginia researchers found that people of lower SES had “narrow-but-deep” networks-fewer people but larger amounts of interaction with them. More affluent Americans, by contrast, have “broad-but-shallow” networks, where the inverse is true.

Reason for Optimism
However, social media usage may be emerging as a positive force in leveling the socioeconomic playing field. For instance, social media skills are becoming prerequisites to employment in a variety of sectors, and finding these jobs to begin with requires familiarity with the online and social media universe. Young people, who have been disproportionately affected by the global recession but are “digital natives” are line for these positions, and racial minorities are even more likely to have social media proficiency than Caucasians.

Social media also has implications for entrepreneurship; with a low barrier to entry, startups and e-commerce sites have opened up broader avenues of economic participation for traditionally disenfranchised groups. Consumers, too, are benefitting, as they have faster and better access to product information, special deals, and so forth.

Promise of Social Media
Dramatic examples already exist of how powerful social media can be as a socioeconomic driver, including the Tahrir Square protest in Cairo where throngs of (mainly younger) Egyptians gathered to speak out against the lack of economic opportunity in the country. They organized via social media since it would have been impossible to go through state-controlled media outlets. The effects were so dramatic that some dubbed the subsequent downfall of the Mubarak regime the “Twitter Revolution.”

Others, from Occupy protestors to Tea Partiers, have taken advantage of social media’s organizing power, and so too have politicians such as Barack Obama. Social media was a main force behind his staggering fundraising totals from small-dollar donors.

Local governments and chambers of commerce have also understood these trends, and recently a large emphasis has been placed on attracting potential employers through social media efforts.

Possible Perils
However, there are those who warn of “slacktivism”-that social media will in fact diminish real world mass mobilizations in favor of comparatively easy social media participation. Proponents of this view argue that the “weak ties” of online interaction will translate to less impacting social and economic justice actions over time.

The Jury is Still Out
It may be years until we know just how social media has truly impacted the socioeconomic sphere, but it is already certain that its impact is real, constantly evolving, and here to stay.