Social media and other addictive Internet sites - people are constantly glued to them, even on their work, which decreases their productivity. Social media also cause depression in many people, because they not only procrastinate, but also constantly compare their life to others, which leads to dissatisfaction. Also social media are good at spreading lies and fakes, which can have negative effects on the economy - anti-vax panic, anti-GMO, political manipulation and so on.
I totally agree with everything you've said. But on the contrary, I would rather say do not detach them from social media and other addictive sites and utilize it or convert the norms of these platforms to a more productive environment. Social media for one is a powerful thing, but most people are misled by its
true use. As you said, it causes a lot of problems, the majority of its users derailed others from
reality. But if somehow we can turn this around and make this platform be useful for the country's economic development or even individual's productivity, we wouldn't be having the impression like this. The users are the problem, not the social media per se.