Tick Tock

Rumor has it that on January 19th, TikTok will be banned. To some of you, this means nothing. But if you are like me and love to spend your evening brain-rotting on TikTok once the clock strikes 9 p.m., I send my condolences. It is going to be hard to part from my Chinese spy who has perfectly curated my "For You Page" (FYP) these past six years.

A primary reason for the app's ban is security concerns, but what will the economic impact be? TikTok influences various economic sectors, including marketing, advertising, and production. Millions of creators may be at risk, losing a major source of income and possibly their entire careers.

In 2023, TikTok drove $15 billion USD in revenue for small businesses in the US. There are over seven million small businesses that depend on TikTok as a primary platform to promote and sell their products. TikTok is providing people with constant income and the means to live a life above the poverty ceiling. Small businesses that used TikTok added $24 billion to the US economy, giving more than 240,000 jobs to people—all of whom were fundamental in providing the goods and services to these small businesses. To put this into perspective, 52% of small businesses rely on TikTok as their main social platform. All these people have become dependent on TikTok as a source of income, and the government has also benefited as well.

There was a poll conducted by the University of Chicago, asking economic experts whether the ban will have a negative impact on innovation. Most of the economists claimed that TikTok's ban will not have an impact on our economy. While I agree that technological innovation won't be achieved through TikTok, I think that many creators will lose jobs, increasing unemployment, and potentially decreasing GDP. Also, since TikTok is a primary social media platform used to advertise and promote products, many small business owners may not be able to succeed. Those who provide goods and services to the small businesses may also suffer. They may experience a decreased income if small businesses are not getting as many customers as before, with TikTok as their main sales platform. It is going to be a chain effect, impacting every level. Due to the change in platforms and the awful algorithm used by Instagram, it may become much harder to promote new products.

Creators can utilize a 'TikTok format' through Instagram Reels, but for viewers, the experience differs. It will be interesting to see whether a new social media platform emerges to replace TikTok or if there will be any economic impact.

What do you think? Feel free to leave your opinions in the comments.

I am sad to see it go :(