Technological changes take years to diffuse through the economy.
Contrary to popular wisdom, the Internet is no exception. With the bursting of the high-tech bubble, the prevailing social mood is shifting from Internet worship to cynicism. Yet just as the early tone was overoptimistic, the new one could easily become unjustifiably pessimistic. To avoid overreactions, it might be useful to analyze what propelled the dot-com craze to the ridiculous heights it reached in 1999 and early 2000. That this was a craze is becoming ever clearer.