Information Economics

I’m a big John Mauldin fan.  This is one of the best articles he has shared in the last 5 years or so.

To paraphrase:  Material is conserved by the laws of physics.  That is, the Earth has the same stuff on it now that it did when cavemen were here.  The difference between us and them is the knowledge that has been accumulated and transferred.  Knowledge is discovered and shared in unpredictable ways, that cannot, by mathematical proof, be controlled.  However, it can be disrupted or diminished.  In order to maximize knowledge and thereby maximize wealth for all, the mechanisms for transmitting new ideas need to be controlled and steady.  This is rule of law (institutions and processes that people put in place).  The reason we are having issues now is that there are interferences on the proper transmission of information.


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