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September 25, 2006
Thermodynamics, Zero Sum, Evolution, and Growth Economics
There is a curious mix of conventional wisdom* that makes people apply the core message of the Second Law of Thermodynamics to how economics and thus knowledge interact. Often this is explained by saying that economic systems are not Zero Sum. Much of the reason knowledge, and thus economics, are not zero sum is that there is an intrinsic disconnect between the Second Law and its supposedly intuitive application to systems of knowledge, organisms, or economics. If one believes in evolution (and I certainly do) the concept that organic or computational systems create less entropy from random is somewhat obvious from the natural outcomes of evolutionary processes.
* I'm not a fan of conventional wisdom. Pragmatism has value, but the way things change is to creatively challenge orthodoxy of any body of knowledge.
Posted by hoffmang | September 25, 2006 08:42 PM
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