Tangentially related, the SF author Roger McBride Allen mentions a similar concept as part of the backdrop of one of his novels, "The Ring of Charon". I actually find the idea more and more plausible as time goes on. The relevant excerpt (which is also the only detailed mention in the book) is:

"... And hatred for the Knowledge Crash. If you could hate something that might not even have happened. That was perhaps the surpassing irony: no one was ever quite sure if the Knowledge Crash had even taken place. Some argued that the very state of being uncertain whether or not the Crash had occurred proved that it had.

Briefly put, the K-Crash theory was that Earth had reached the point where additional education, improved (but more expensive) technology, more and better information, and faster communications had negative value.

If, the theory went on, there had not been a Knowledge Crash, the state of the world information economy would be orderly enough to confirm the fact that it hadn’t happened. That chaos and uncertainty held such sway therefore demonstrated that the appropriate information wasn’t being handled properly. QED, the Crash was real.

An economic collapse had come, that much was certain. Now that the economy was a mess, learned economists were pointing quite precisely at this point in the graph, or that part of the table, or that stage in the actuarial tables to explain why. Everyone could predict it, now that it had happened, and there were as many theories as predictions. The Knowledge Crash was merely the most popular idea.

But correct or not, the K-Crash theory was as good an explanation as any for what had happened to the Earth’s economy. Certainly there had to be some reason for the global downturn. Just as certainly, there had been a great deal of knowledge, coming in from many sources, headed toward a lot of people, for a long time.

The cultural radicals—the Naked Purples, the Final Clan, all of them—were supposed to be a direct offshoot of the same info-neurosis that had ultimately caused the Crash. There were whole communities who rejected the overinformed lifestyle of Earth and reached for something else—anything else—so long as it was different. Raphael did not approve of the rads. But he could easily believe they were pushed over the edge by societal neuroses.

The mental institutions of Earth were full of info-neurotics, people who had simply become overwhelmed by all they needed to know. Information psychosis was an officially recognized—and highly prevalent—mental disorder. Living in the modern world simply took more knowledge than some people were capable of absorbing. The age-old coping mechanisms of denial, withdrawal, phobic reaction and regression expressed themselves in response to brand-new mental crises.

Granted, therefore, that too much data could give a person a nervous breakdown. Could the same thing have happened to the whole planet?

The time needed for the training required to do the average technical job was sucking up the time that should have gone to doing the job. There were cases, far too many of them, of workers going straight from training program to retirement, with never a day of productive labor in between. Such cases were extreme, but for many professions, the initial training period was substantially longer than the period of productive labor—and the need for periodic retraining only made the situation worse.

Not merely the time, but the expense required for all that training was incredible. No matter how it was subsidized or reapportioned or provided via scholarship or grant program, the education was expensive, a substantial drain on the Gross Planetary Product.

Bloated with information, choked with the of a world-girdling bureaucracy required to track information and put it to use, strangled by the data security nets that kept knowledge out of the wrong hands, lost in the endless maze of storing and accessing all the data required merely to keep things on an even keel, Earth’s economy had simply ground to a halt. The world was so busy learning how to work that it never got the chance to do the work. The planet was losing so much time gathering vital data that it didn’t have a chance to put the data to use. Earth’s economy was writhing in agony. ..."