Why Information Grows
An interdisciplinary exploration of how information underpins economic growth.
Summary of 6 Key Points
Key Points
- The role of physical order in information creation
- How economic complexity emerges from information growth
- The thermodynamics of information and human knowledge
- The relationship between information and the economy
- The process of knowledge accumulation in societies
- Networks and the flow of information in economic systems
key point 1 of 6
The role of physical order in information creation
The role of physical order in information creation is fundamentally significant. In the realm of physical order, we find that information is no longer just an abstract concept but something that is tangible and real. Physical order refers to the arrangement of particles in a system. This order is essential in creating information, as without it, the information would be random and meaningless…Read&Listen More
key point 2 of 6
How economic complexity emerges from information growth
The emergence of economic complexity arises from the constant growth and dissemination of information. This is a result of our collective ability to accumulate knowledge and innovate, creating new information that propels economic activity. In this sense, economies transform from being relatively simple, with limited diversity in production and consumption, to being highly complex, characterized by a wide array of specialized products and services that are interconnected through a web of economic activities…Read&Listen More
key point 3 of 6
The thermodynamics of information and human knowledge
In the perspective of thermodynamics of information and human knowledge, it’s postulated that information and knowledge growth are fundamentally linked to the laws of thermodynamics. Unlike physical systems, which tend to move towards states of disorder or entropy, information systems tend to grow and evolve, becoming increasingly complex and ordered over time. This process of ‘information crystallization’ can be seen in everything from the development of life on Earth to the evolution of human societies and economies…Read&Listen More
key point 4 of 6
The relationship between information and the economy
In the view of the book, information and the economy are intrinsically intertwined. The economy, as described, is not just a system of money and goods, but also a system of information. It posits that the growth of economic wealth is directly correlated with the growth of information. The more information a society has and can process, the wealthier that society becomes…Read&Listen More
key point 5 of 6
The process of knowledge accumulation in societies
The process of knowledge accumulation in societies is a complex interplay of shared understanding, collaboration, and innovation. It begins with the establishment of communal knowledge, a shared understanding of the world around us, and the principles that govern it. This knowledge forms the foundation upon which societies build, creating a collective pool of information that is accessible to all members…Read&Listen More
key point 6 of 6
Networks and the flow of information in economic systems
Networks in economic systems, as discussed, are complex structures that allow the flow of information. They consist of interconnected nodes, which can represent individual actors, companies, or countries, and links that represent relationships or interactions between these nodes. These networks are dynamic and constantly evolving, reflecting changes in the relationships and the flow of information within the economic system. Networks facilitate the circulation of knowledge and ideas, enabling the sharing of information and fostering innovation…Read&Listen More