The math used for training AI—minimizing the gap between an internal model and external reality—also governs economics. Successful economic agents (individuals, companies, societies) are those with the most accurate internal maps of reality, allowing them to better predict outcomes and persist over time.

Both Democrats and Republicans avoid the boring, complex solutions to inflation—like housing density, healthcare reform, and aggressive antitrust. Instead, they opt for politically palatable but ineffective measures like tariffs (Republicans) or short-term subsidies (Democrats), ensuring the core problems remain unsolved.

Technology dictates societal structure and policy options, not the other way around. Concepts like a wealth tax are only possible because of the technological ability to track wealth at scale. This suggests society adapts to technological realities rather than consciously shaping them.

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.

Peter St-Onge argues that microeconomics, based on classical supply and demand, is largely true and useful for business. In contrast, he claims macroeconomics is dominated by Keynesian theory, which justifies government intervention and often functions as propaganda rather than objective science.

The speaker contrasts his experience in game development, where he had to abandon a flawed strategy upon encountering the "physics" of the process, with politicians. Politicians often double down on failed economic models despite overwhelming historical evidence, refusing to adjust their approach.

The act of a small committee deciding the "correct" cost of money is analogous to communist planners setting prices for consumer goods. This approach assumes an impossible level of knowledge and control over a complex economy, a model that has consistently failed throughout history.

Inflationary pressure (P) is a function of money supply (n, molecules), money velocity (T, temperature), and the economy's productive capacity (V, volume). This system is held together by institutional trust (R, the constant). This physics analogy provides a comprehensive framework for diagnosing economic pressures.

The idea that government should "stay out of" markets is a flawed model. The government is an inherent economic actor, and choosing deregulation or non-intervention is an active policy choice, not a neutral stance. This view acknowledges politics and government are inseparable from market outcomes.