Ah, I think this is the disconnect here. Computers and the Internet are more than just fun.
Let’s take as another example from history, the printing press. What was the direct impact on rate of economic growth that stemmed from the printing press? In truth, probably not that much compared to lots of other technologies. Certainly nothing like what we saw with the steam engine. Yet, I would argue, and I think some would agree, that it had a fairly profound impact on Western, and thus human, civilization. It had large sociopolitical impacts.
I would argue that while the printing press may have had less direct impact on economic growth, and thus human standard of living, than many other technological innovations, it had a significant impact on how humans thought. It changed the way they perceived the world.
Computers and the Internet have had a similar impact (while ALSO driving massive economic activity).
The ideas that you are exposed to, are dramatically more varied than what prior generations were exposed to. Let’s just look at the trivial example of Robert Gordon’s book. 50 years ago, even if that book got published (which is certainly not a given), what are the chances that you would have ever encountered it? If it happened to be in the limited stock of a bookstore that you happened to wander into. Or maybe you might encounter in the limited stock at your local library? If you were pointed to it by Krugman, then maybe you wouldn’t have even seen that article, unless you bought the NYT.
Or consider us having all these discussions we do here on this forum. People from all over the world, from all walks of life, talking about all kinds of random stuff. You know how it used be? Like… In the 90’s? You talked to people in your immediate vicinity. The Internet gives you the ability to be exposed to tons of new stuff that you would never otherwise have encountered.
I have this cartoon on my wall in my office.
Look at the impact of cell phones and computers on major international events, like the Arab spring. Or more recently, consider how greater access to information shapes your views regarding things like the Israel/Palestine conflict. Without modern telecommunications, the reality is that most of us probably wouldn’t even know anything was going on. It would just be some random people on the other side of the planet killing each other, just like Europe was to Americans just prior to our entry into WWII.
I think that even if we were to stipulate that the Internet and computers had no direct benefit to human existence (which I do not agree with, but for the sake of argument), I think that you can make an argument that by democratizing the production and distribution of information, you fundamentally change human society, by changing the information people are exposed to, and thus changing the way they think about the world.