[This is a highly speculative post in which I discuss some relatively inchoate thoughts about a potential economic singularity. I welcome comments offered in the same vein.]
The four most dangerous words for our economy are "this time is different." Anyone who has lived through and paid attention to, the last few bubble iterations (dot.com, housing, financial) knows that when the good times are rolling, the Cassandras who warn of impending doom are typically silenced with words to the effect that "this time is different." It raises the question of what conditions would need to exist for the economy to actually reach a point where the ruleswould change; in other words, what conditions could enable an economic singularity?
The triumph of liberal capitalism (though in the present context of the early days of a frightening recession it may not seem particularly triumphant) has been the creation of wealth. By leveraging individual genius we were able to create a self-perpetuating technology that has raised the standard of living of even the poorest Westerner to levels that Kings could only dream about in the past. At the same time, our great wealth has enabled us to facilitate our brightest minds to answer questions about the nature of the world that have led to amazing increases in life expectancy and the ability to manipulate and exponentially increase knowledge.
Ray Kurzweil's insight in The Singularity is Near was to notice that any field of intellectual pursuit, once its tools (technology) had matured, inevitably would follow Moore's Law. Certainly human activity could short circuit the application of Moore's Law in any particular field. A totalitarian regime could restrict the open availability of information in ways which would inhibit further developments in a particular field. A government that had fallen under the sway of nonsensical ideology, aka religious or quasi-religious beliefs, could impede the growth of the economy in such a way as to impair information acquisition.
(As examples, some might accuse the Bush administrationof stunting the development of bio-tech by the refusal to fund embryonic stem cell research; others express concern that by increasing taxes in service of a belief in anthropogenic global warming, the Obama administration will impair our ability to support more speculative science.)
However, the underlying premise of Moore's Law, that information increases exponentially, and Ray Kurzweil's corollary, that any field that evolves to the point where it is primarily about manipulating information will inevitably follow Moore's Law, has so far held up fairly well.
What does this mean about the possibility of coming to a time when we discover that "this time really is different"?
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