Economics can be viewed as the physics of information, where profit is the surplus created when intelligent agents organize chaos into useful order (reduce entropy) faster than the system naturally decays back into disorder.
The behavior of ant colonies, which collectively find the shortest path around obstacles, demonstrates emergence. No single ant is intelligent, but the colony's intelligence emerges from ants following two simple rules: lay pheromones and follow strong pheromone trails. This mirrors how human intelligence arises from simple neuron interactions.
Post-WWII, economists pursued mathematical rigor by modeling human behavior as perfectly rational (i.e., 'maximizing'). This was a convenient simplification for building models, not an accurate depiction of how people actually make decisions, which are often messy and imperfect.
The current movement towards impact-focused business is not just a trend but a fundamental economic succession. Just as the tech revolution reshaped global industries, the impact revolution is now establishing a new paradigm where companies are valued on their ability to create both profit and positive contributions to society and the planet.
Multi-million dollar salaries for top AI researchers seem absurd, but they may be underpaid. These individuals aren't just employees; they are capital allocators. A single architectural decision can tie up or waste months of capacity on billion-dollar AI clusters, making their judgment incredibly valuable.
During major platform shifts like AI, it's tempting to project that companies will capture all the value they create. However, competitive forces ensure the vast majority of productivity gains (the "surplus") flows to end-users, not the technology creators.
The narrative of AI destroying jobs misses a key point: AI allows companies to 'hire software for a dollar' for tasks that were never economical to assign to humans. This will unlock new services and expand the economy, creating demand in areas that previously didn't exist.
Describing space exploration as a 'cash grab' isn't cynical; it's a recognition of fundamental human motivation. Money acts as 'proof of work,' incentivizing people to dedicate time and resources to difficult, long-term goals. Without a profit motive, ambitious endeavors like becoming a multi-planetary species would never attract the necessary capital and talent.
A core flaw in Marxist economic theory is its failure to see an economy as a dynamic system. It treats wealth as a fixed "pie" to be re-sliced, ignoring that the "oppressive" productive class it seeks to eliminate is what bakes the pie in the first place.
While AI may make energy and labor nearly free, it cannot eliminate all scarcity. Finite resources like physical space (e.g., Malibu real estate) and time will always exist. This ensures that economic principles and competition will remain relevant in any future.
Biological intelligence has no OS or APIs; the physics of the brain *is* the computation. Unconventional AI's CEO Naveen Rao argues that current AI is inefficient because it runs on layers of abstraction. The future is hardware where intelligence is an emergent property of the system's physics.