[indubitable]

I'd like to see numbers here. There are huge industries that have been built around entertainment and recreation forever: sports, hunting, movies, television, books, music, etc. I expect, as a ratio, we're collectively spending far less on e.g. baseballs and far more on video games. It'd be interesting to see the net real change in society's total non-essential expenditures. I would be quite surprised if it was all that large especially if we do not consider ultra-high end recreation to account for the fact that there are far more upper class and rich individuals now a days, so their recreational spending could make it look like all of society is spending that much more - when that's certainly not your hypothesis.

And Facebook complicates the matter even more. They do not make money by "building things for the entertainment of others". They make money by building one of the most effective datamining and human profiling systems in existence, enabling companies to pay money access the product of this by precisely targeting individuals to compel them to either buy things or be influenced by their brand. It doesn't really answer the question of where money is being spent. Those companies are giving Facebook money because you give those companies your money. What is the distribution and gross effect of that spending?