Representation Of Dynamic Creation In Double-Entry Bookkeeping. It Doesn't Exist.

   (Commentary posted by Roger Erickson)

Finally, an economist who speaks my language!

[Economics] "is a classic example of trying to understand something that is essentially dynamic - innovation - in a static model focused on calculating the optimal or the most efficient allocation of resources."

Ya think? NeoClassical economics is absolutely blind to the greatest return by far, the return on coordination.

To economists of all stripes, it's like the history of evolution, and the history of the universe, never happened. Only this quarter matters. Yeah right, to them and dinosaurs!

And Peter Thiel is an example of an idiot savant, so naive that it's laughable, no matter his Buffet-like talent at over-adapting to a transient context.

Speaking of evolution, it's the art of charting an optimal path through an unpredictable series of transient contexts, occurring with unpredictable intervals. Over-adapting to any transient context is the surest way to fail to prepare for the next one, and hence a good way to commit suicide.

Economics is the art of optimal asset allocation for a single context. 

Hence, long term cultural survival is about USING ECONOMIC ANALYSIS WITHIN PRACTICAL BOUNDS. Is that really so difficult?

Having economists dictate the limits of Aggregate Policy is like an architect letting a carpenter with a hammer dictate design limits. All you can end up with is dents in everything, and a lot of damage.

Risk management is NOT leadership. Nor is asset allocation. 

Where can cultural evolution take us? Where will it take us? Don't ask lawyers, and for humanity's sake, do NOT ask economists. All they can tell us are the risks to today of going to someplace else or becoming anything else tomorrow, and hence they also can't grasp the risk of NOT changing, and not going somewhere else from here.

Capiche?

Any nomad would understand the risk of not moving on. You'd think human Context Nomads would understand the risk of listening to lawyers & economists, when it comes to deciding where to go next.

Don't ask me why they won't.  Ask yourself.