Albert Wenger (Partner, Union Square Ventures) shares his philosophy on a few key points:
- We are experiencing a technological non-linearity due to digital technologies two key properties (1) ability to scale at zero marginal cost and (2) universality of computation. These two properties combined is going to drive a profound increase in what is possible for humanity. He imagines healthcare disrupted by computer programs – a software that can diagnose patients symptoms (computing power is at the crux of being capable of this) which once feasible, would also be scalable at zero marginal cost, delivering free healthcare to all. Regulation would inevitably impede this growth as incumbent players would do all that it takes to stick to the status quo. Wenger argues that the proper regulation would be aimed at giving more economic freedom to individuals by giving them access to information.The non-linearity has happened twice in human history. First with the invention of agriculture and second with the enlightenment which ushered in the Industrial Age. In each of these periods, the binding scarcity constraint (food > land > capital) shifted. But capital is no longer scarce – competitive markets and entrepreneurial activity have accumulated enough financial capital to form all the physical capital to meet our needs in housing, clothing, transportation, education, and healthcare (although not properly distributed nor allocated for creation of global productive capital). Instead, digital technologies have created so much content and knowledge that what’s scarce now is our attention.
- Generally shifts from this non-linearity are met with great resistance i.e. war, and we seem intent on clinging onto the deep-rooted capitalistic values we’ve upheld from the Industrial Age. We cling on to traditional economic models, with individuals earning a living by selling their labor, and using that labor to buy goods and services – “the job loop”. As the job loop gets disrupted by digital technologies, it’s also not necessarily clear that humans can adapt to find meaningful paid work. We need to juggle automation without a collapse in aggregate demand (unemployment), and collectively shift away from our emotional attachment to work as a source of purpose / human dignity.
SUMMARY TBU
Nat's Corner 