Knowledge Grows Faster Than Compound Interest

Remember that accumulated knowledge, like accumulated capital, increases at compound interest: but it differs from the accumulation of capital in this; that the increase of knowledge produces a more rapid rate of progress, whilst the accumulation of capital leads to a lower rate of interest. Capital thus checks its own accumulation: knowledge thus accelerates its own advance. Each generation, therefore, to deserve comparison with its predecessor, is bound to add much more largely to the commo...

 Economics Uses Magical Language

A common feature in systems of magic is animism — attributing to inanimate objects the functions of life, assuming things to possess will, purpose, and power. It is significant (though quite in keeping) that "Economists" and "Financiers" have this characteristic at- titude of mind towards, and employ animistic forms of expression in writing and talking about "Money" and "Capital." Whether this is due to unconscious belief in magic or is mere metaphor, the result, in either case, is befo...

 The Gas Lamp Brought Networked Collective Life

Wolfgang Schivelbusch (1995) argues that one of the most important transformations of networked urban life came with the rise of the gas lamp. The introduction of gas ended the autonomy of oil lamps and candles whereby each household effectively supplied its own energy needs. Gas represented the industrialization of light, transforming households into nodes of a centralized power source, linking the domestic and intimate to larger structures of capital and the state. In this way, Schivelbusch...

 The Nobel Prizes

The capital ... shall form a fund, the interest of which shall be distributed annually as prizes to those persons who shall have rendered humanity the best services during the past year. ... One-fifth to the person having made the most important discovery or invention in the science of physics, one-fifth to the person who has made the most eminent discovery or improvement in chemistry, one-fifth to the one having made the most important discovery with regard to physiology or medicine, one-fif...

 Knowledge Produces More Rapid Rate of Progress

Remember that accumulated knowledge, like accumulated capital, increases at compound interest: but it differs from the accumulation of capital in this; that the increase of knowledge produces a more rapid rate of progress, whilst the accumulation of capital leads to a lower rate of interest. Capital thus checks its own accumulation: knowledge thus accelerates its own advance. Each generation, therefore, to deserve comparison with its predecessor, is bound to add much more largely to the commo...