The Addiction Economy

A recent paper from researchers at UCLA and USC detailed the deleterious impact of legalized gambling on consumers’ financial health, so we felt it was an apt time to republish Evan Armstrong’s article on how consumer products across industries—TikTok, diet apps, investing platforms, and, yes, sports betting platforms—have become increasingly addictive. Evan argues that as digital competition intensifies and technology inputs are commoditized, addiction has become a key differentiator and competitive advantage. But he also offers a hopeful perspective on how individuals can resist these addictive forces. When coupled with his piece from last week about consumers becoming addicted to AI chatbots, it’s clear that we’re entering a digital world that requires intention and care to navigate. He’s researching a framework for how to know when you should worry about addiction, but in the meantime, we wanted you all to read this piece to prepare.—Kate Lee

Was this newsletter forwarded to you? Sign up to get it in your inbox.

---

The first time I opened TikTok was the first time I was terrified by technology. At 9 p.m. on a Tuesday night in Southern Utah, I downloaded the app thinking I would check it out for five minutes. Then, without warning, I looked over at the clock and it was 3:30 a.m. I had been scrolling for six-and-a-half hours without pause. At first, I thought I had a stroke or the clock was wrong, but then I realized that I had just been laying in bed, flicking my thumb up the screen, my mind ignoring the passage of time. TikTok had grabbed control of me—body and mind. It was spooky.

The next day I tried to describe to my family what had happened and what TikTok was. After several minutes of failed explanations, I finally hit on something that felt right.

“It’s like TV on crack.”