Think Economically

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Maximum understanding, minimum average total cost.

Will everything be free in the future? Robots, information, value, and the long view of relative prices.

I don’t think everything will be free–more likely relative prices of raw goods and manufactured goods are just likely to swing drastically. If you take the long view of human history, increasingly the value of a good is defined by the information in it, and we have gotten much better at separating, recording and transmitting that information. If you think about it, mathematics and engineering are about inventing the language to describe the information contained in a good, interchangeable parts and mass production increase the signal-to-noise ratio, information goods like books, music, movies, research, software–these *are*their information–and then the development of an information infrastructure as well as cheaper and more widely distributed mechanized production methods mean that the information slowly becomes the only missing part.

Another way to think about it is that we have steadily shortened the distance between knowing how to make something and having it made. Little by little, the having it made part is becoming trivial relative to the knowing how to make something. Because information is non-rival–my having information implies nothing about your ability to have it–private goods become less private. Read the rest of this entry »

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