Sunday, July 28, 2013

Evolution/Economics

Going back to Evolution, perhaps we can learn from it why the income gap between rich and poor is getting wider. Perhaps we should look more closely at the difference between elephants and birds to get a better understand of why. 

Seriously, though, Evolution is changing how we will do economics in the future, due to climate change, rising sea levels and other geographic changes. But I don't think economics will ever have the same impact on Evolution. But who knows. Perhaps some day we will have the economic tools to role back the negative influences of human activity on nature and restore things to their rightful splendor.

There is one area where economists have not examine evolutionary nature closely enough to understand why a particular economic paradigm failed and another didn't. Why did communism collapse and capitalism triumph? The answer is in nature's laws, particularly the second law of thermodynamics, more commonly known as entropy.  Since communism ignored this law, in more ways than one, it stagnated and collapsed. It refused to change, which is the way to combat entropy. On the other hand, capitalism has ascended because it is constantly reforming in order to avoid entropy. Even the financial crises of 2008 was a means of reform, to change old and bad habits.

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