Do we face a drop in living standards?

October 23, 2011 by · Comments Off 

I have had some interesting behind-the-scenes conversations with Michael Mandel about the guest post he asked me to write about the post-industrial production economy. (I hope that you will read and comment there)

Here, I would like to take a deeper dive on a question Michael asked me about the the scenario I paint of this knowledge economy production–whether it matches up with today’s goods-based world and whether it might feel like a drop in living standards for some or many people. It’s a goodquestion and here are some thoughts. Read more

Exciting book about the economics of intangibles: From Poverty to Prosperity

April 17, 2010 by · Comments Off 

If you took economics in school, your mind is trapped inside a box. It’s not alone. Most minds in our business and economic communities today are still inside that box.

But it’s time to break out of the box because the knowledge economy is here to stay. And the knowledge economy breaks some of the fundamental rules of economics as we know them. That’s because the economics we learned is based on the concept of scarcity. I sell you a shirt and I have one less in inventory.

Knowledge, in contrast, is not a finite asset. If I share an idea with you, my inventory of ideas doesn’t go down. We will probably collaborate to improve the idea. If I sell you a software license, my software doesn’t decrease in value, it will probably increase in value because I’ll get user feedback. Read more