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Digital Divide: An Increasing US Caste System

This week in Consumer behavior we discussed the changing American demographic, which pertains to our society’s population, distribution, and structure. To break this down even further, we talked about social stratification within the American demographic, and the socio-economic factors that affect our fairly malleable class system.  

Although recalling a time without computers and technology might be hard, it is still relatively new. The world is now constantly seeing rapid transitions and increases in the computing power of technology. Not only are we right in the middle of this this digital age, our largest generation in the US, the millennials, are at the forefront of technological development. We are relied upon to create and develop new technologies, as well as refine and master old ones for generations to come. But with this obligation comes a price. The 21st century is experiencing a growing divide between the digital “haves” that have access to technology, and the digital “have-nots” that cannot afford, or live in a region where this technology is not easily accessible. 

A Caste System

Image result for digital divideAlthough the internet and computers are at their most accessible in history, the gap between digital divide is still large. It is seen to have created a growing technological caste system, and a significant amount of demographic groups are these resulting castes. A study done a few years ago states, “minorities, the elderly, low-income families and residents of rural areas have historically lagged behind in internet use.” These findings make sense as these groups would have the hardest time acquiring computers and the internet based on higher costs, and technological literacy, as well as geographic location. Interestingly, based on household income, a technological caste system can arise.

 Less than $30,000: 60 percent
$30,000-$49,999: 76 percent
$50,000-$74,999: 83 percent
$75,000+: 94 percent

To read more on the study, visit the link here: http://blog.nj.com/njv_kelly_heyboer/2010/01/digital_divide_the_internets_h.html

This has a direct effect on strengthening, and making our already existing caste system more rigid.
The economic implications of the digital divide are significant.
Of course, with higher income comes more disposable income to spend on computers, phones, and high-speed internet access, and in turn, the opposite is true. I believe the digital divide is a symptom of overarching problems such as income, literacy, and development. Lower class citizens and poor countries must make decisions everyday about food, safety, and health care. These responsibilities, to them, are much more important than having a computer or internet access. “A computer is not useful if you have no food, electricity, or are illiterate.” To overcome the “digital divide,” we need to treat the causes, not the symptoms.

But what effect does this have on Consumer Behavior?

This digital divide, could pose opportunities for tech companies to provide to the lower class specialized services and products at a lower price point, such as internet services and mobile phones.

Politically and economically, governments around the world need to actively promote initiatives to close the gap. As per my research, they are attempting to do so, but still need a lot of work to progress. The government programs enhancing education to the lower class is a start to strengthen literacy skill. Only then, will these lower class citizens be able to become technologically literate. Companies also need to work towards universal access to the internet and equal service for all citizens, potentially creating subsidized access for low-income households. But this creates a political issue, with the debate on net neutrality, where companies can control information and internet speed consumers seek. With the trend going digital for consumer sales of many products, companies will have to work towards creating an experience online that mimics an in store experience.  Culturally, society needs to change its attitudes concerning technology. Cultures should view technology and access to the internet as a necessity, rather than a luxury. Only then will society be able to push for technology access as a vital component for our future.

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