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01 / 05
Knowledge Grows When We Consume It

Blog Post | Economic Growth

Knowledge Grows When We Consume It

We can't create more atoms, but we can create infinitely more knowledge that makes atoms valuable.

Summary: Our planet is abundant but finite—it only has so many atoms. However, that doesn’t mean we will ever run out of resources. This article argues that by expanding our knowledge, we can get infinite value from our finite atoms.


Thanos was right in that there are a finite number of atoms in the universe. But he was dead wrong about resources being finite. Resources are atoms that have been organized in a way that creates value. Resources are “intelligized” atoms. Knowledge is what makes atoms valuable. The number of atoms is finite, but the growth of knowledge is not. As the American economist George Gilder notes, “The difference between our age and the Stone Age is entirely due to the growth of knowledge.” Consuming knowledge creates knowledge. When we’re learning, we’re consuming and creating knowledge at the same time. 

Gilder offers three beautiful and simple principles: wealth is knowledge, growth is learning, and money is time. From these we can derive a theorem: The growth in knowledge can be measured with time. The Canadian psychologist Jordan Peterson recognized this theorem when he observed, “If you can produce the same amount in half the time, you’re twice as smart. You’ve doubled your knowledge.”

We found that the time price of 50 basic commodities fell by an average of 75.2 percent between 1980 and 2020. That means for the time required to earn the money to buy one item in 1980, you would get 4.03 in 2020. That’s a 303 percent increase in 40 years. Over that time period, personal resource abundance increased at a 3.55 percent compound annual rate, doubling every 20 years. That happened at the same time global population increased by 75.8 percent. More people mean more abundance because more people are discovering and sharing and consuming and growing knowledge. 

Knowledge is only limited by the number of humans that are free to act on their value-creating ideas. Economics is the study of how humans create value for one another by discovering and sharing valuable knowledge in free markets.

Some believe that our objective should be sustainability, but sustainability is thinking, like Thanos did, in terms of finite atoms. Creativity is thinking in knowledge. We can’t create more atoms, but we can create much more knowledge. Just as there are no limits to the number of songs you can create with 88 keys on a piano, there are really no limits to the growth in knowledge that’s needed for new ways of organizing of our planet’s abundant, but finite, number of atoms. 

You can learn more about these economic facts and ideas in our new book, Superabundance, which is available at Amazon. Harvard professor and former chair of the Council of Economic Advisers Jason Furman writes that “Superabundance pulls off the remarkable feat of being both exhaustive and entertaining at the same time.” We hope that you too will enjoy it.

S&P Global | Energy & Natural Resources

US DOE Finalizes Rules to Speed Transmission Permitting

“Under the program, the DOE will coordinate efforts across eight other agencies to prepare a single environmental review document for transmission developers seeking federal approvals. The program also establishes a two-year timeline for the permitting process.

‘The CITAP program gives transmission developers a new option for a more efficient review process, a major step to provide increased confidence for the sector to invest in new transmission lines,’ the DOE said in a fact sheet.

A second final rule creates a categorical exclusion — the simplest form of review under the National Environmental Policy Act — for transmission projects that use existing rights of way, such as reconductoring projects, as well as solar and energy storage projects on already disturbed lands.”

From S&P Global.

Washington Post | Health & Medical Care

FDA Authorizes AI-Driven Test to Predict Sepsis in Hospitals

“Bobby Reddy Jr. roamed a hospital as he built his start-up, observing how patient care began with a diagnosis and followed a set protocol. The electrical engineer thought he knew a better way: an artificial intelligence tool that would individualize treatment.

Now, the Food and Drug Administration has greenlighted such a test developed by Reddy’s company, Chicago-based Prenosis, to predict the risk of sepsis — a complex condition that contributes to at least 350,000 deaths a year in the United States. It is the first algorithmic, AI-driven diagnostic tool for sepsis to receive the FDA’s go-ahead.”

From Washington Post.

BBC | Conservation & Biodiversity

How AI is being used to prevent illegal fishing

“Global Fishing Watch was co-founded by Google, marine conservation body Oceana, and environmental group SkyTruth. The latter studies satellite images to spot environmental damage.

To try to better monitor and quantify the problem of overfishing, Global Fishing Watch is now using increasingly sophisticated AI software, and satellite imagery, to globally map the movements of more than 65,000 commercial fishing vessels, both those with – and without – AIS.

The AI analyses millions of gigabytes of satellite imagery to detect vessels and offshore infrastructure. It then looks at publicly accessible data from ships’ AIS signals, and combines this with radar and optical imagery to identify vessels that fail to broadcast their positions.”

From BBC.