[WS:] I take your point on teabaggers. However, I do think that the "new economy" hoopla can be compared to the hoopla created by the communists in 1947 - both attracted many intellectuals, even the first rate ones (like Kolakowski) - because it deceptively promised an idea dear to most intellectuals - that of the Platonic "philosopher king." Or to state it differently, in both cases there was the lure that direct application of cognitive skills (as opposed to heritage, social position, political connections and power etc.) will accomplish two things: (i) solve societal problems and (ii) give the intellectuals power and social status. That lure proved illusory - but it duped many otherwise intelligent people for quite some time.
Case in point - someone I know (a very smart, compassionate and progressive person) got involved in the effort called "buy this satellite" http://buythissatellite.org/ In essence, this is a fundraiser to buy a satellite to provide internet services in low income countries. To be certain, I do appreciate those people's willingness to put their money and effort to a good cause - but what strikes me is their naive belief that markets, technology and their own creativity can solve all world problems.
This is the quintessential intellectual attitude created by the "new economy" hype. Those guys chose to apply it to a (lost) progressive cause, many other apply it to libertarian and reactionary causes.
That reminds me of a somewhat similar effort launched in the USSR in the 1920s called "Dobrolyot" (Russian abbreviation for "voluntary aviation". http://en.wikipedia.org/wiki/Dobrolyot) Initially, it was conceived as a fundraiser to create civil aviation in the USSR (actions were sold for 1 ruble). The effort got support of prominent avant-garde artists and intellectuals. The project was abolished in 1930 and replaced by the state-run company - the precursor of today's Aeroflot.
What the Dobrolyot story illustrates is two things: (i) it takes a state effort rather than volunteer enthusiasm to solve complex social problems, especially those requiring high technology; and (ii) volunteer enthusiasts and creator of that technology often do not realize that, they become over-confident in their own skills and inventions and they view the role of other social institutions, especially the state, as irrelevant.
Wojtek