Facebook Inc. (FB) Rattles Economist With Its Economic Impact Claims

Apparently, not everyone is buying into Facebook Inc. (NASDAQ:FB) claims that it is responsible for $227 billion in global economic impact as well as contributing to the creation of 4.5 million jobs worldwide, according to CNBC’s, Cadie Thompson. One thing, which seems to have rattled economists is the fact that Facebook’s suggestions amount to Portugal total GDP.

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“Not all economists are clicking the like button on Facebook Inc. (NASDAQ:FB) latest study. A report done by research firm Deloitte the social network showed even greater economic impact beyond the billion users and $12 billion in revenue it generated last year,” said Mrs. Thompson.

Economists maintain that Facebook Inc. (NASDAQ:FB) is only a mere effect on the economies of the world with minimal impact on economic growth. A questionable revelation revealed by the research firm notes that Facebook accounted for one-sixth of smartphone sales in the world.

Facebook popularity might have grown in the recent past taking into consideration its huge user base, but that could not have had the severe impact that the company is purporting, according to economists. Professor of economics at George Mason University, Tyler Cowen, maintains that Facebook could not have created as many jobs as the study suggests.

Economists also argue that Facebook Inc. (NASDAQ:FB) used questionable assumptions such a valuing each ‘Like’ on the belief that it had an economic impact on businesses. The research firm is also reported to have assigned an economic impact to people who used the platform to organize events such as parties and corporate gatherings.

Despite the unending wave of criticism over the report, Facebook Inc. (NASDAQ:FB)’s Chief operating officer, Sheryl Sandberg, is of the opinion that the network has grown so big that many people are confusing it to the internet. Sandberg told the Wall Street Journal that many people were buying smartphones in third world countries attributed to marketing campaigns on the platform.

Sandberg has not been fazed by the ongoing criticism and plans to discuss the study at the ongoing World Economic Forum in Davos Switzerland.

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