Thursday, August 23, 2012

New George Gilder Article About Capitalism

Great new George Gilder article on capitalism,

America’s wealth is not an inventory of goods; it is an organic entity, a fragile pulsing fabric of ideas, expectations, loyalties, moral commitments, visions. To vivisect it for redistribution is to kill it. [G]overnment managers of complex systems of wealth soon find they are administering an industrial corpse, a socialized Solyndra. [...]

Entrepreneurship is the launching of surprises. The process of wealth creation is offensive to levelers and planners because it yields mountains of new wealth in ways that could not possibly be planned. But unpredictability is fundamental to free human enterprise. It defies every econometric model and socialist scheme. It makes no sense to most professors, who attain their positions by the systematic acquisition of credentials pleasing to the establishment above them. Creativity cannot be planned because it is defined by information measured as surprise.
In my post about driverless cars, I mentioned Gilder's Law - "the best business models waste the era's cheapest resources in order to conserve the era's most expensive resources." Gilder's thoughts about technology are pretty interesting.

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