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Server system

"Server system" Continued...

Issue: "Biblical callings," Dec. 4, 2010

I've seen your connecting of profit and entropy, the term from thermodynamics that can be used more broadly as a measure of disorder, change, innovation . . . Creativity is what matters in economics. It is what makes economies grow. The interest rate is the predictable yield, but profit is the unexpected, variable yield from an investment. In other words, profit is entropy in economics. Paul Romer, the leading advocate of entrepreneurial economics, sees an entrepreneur as a reassembler of chemical elements, or a developer of new combinations of atoms. Other theorists describe the entrepreneur as an opportunity scout. He is looking for opportunities in the material environment, or looking for demand configuration.

Entrepreneurs increase entropy? Entrepreneurs create new things, and whether they succeed or not is dependent on the willingness of other producers to exchange their production for the output of the entrepreneurs. If they produce high-entropy creations, they get a big response. The customers are surprised by the new iPod or whatever it is and are willing to exchange the fruits of their own production for the production of the entrepreneur.

And entrepreneurs can best increase productive entropy when they know what to expect from government policy? In my information theory terms, you need a low-entropy carrier-no surprises in the carrier-to bear high-entropy information. The carrier is the rules, the rules of the road, the laws. If laws are multiplying and changing all the time, that stifles the kind of creative activity that can overcome our U.S. debt predicament.

We grow ourselves out of debt? If you have a positive, pro-enterprise government and a solid, predictable currency-a low-entropy carrier-the value of American assets will increase immensely and greatly reduce the burden of our current debts. The 1970s were just as bad as things are now, and change in policy completely turned it around. It can happen again today. The Tea Party people are the spearhead of that transformation.

They've surprised some mainstream journalists . . . Entropy measures the degree of surprisal in a communication: How much is unexpected, surprising? If I give a speech and if everything I say you knew already, no information has been transmitted. It's a zero entropy communication. Politicians seem so boring because they poll their audiences before they speak, and thus manage to achieve totally boring zero entropy communication: No surprise.

How does your understanding of creativity lead you into the critique of Darwinian materialism that you've been doing? The essence of Darwinian thought is that at the beginning is matter, and everything else that happens derives from a random selection among random mutations in material systems. Darwinian theory is just another materialist theory. There are tons of them-Marxism, Darwinism, Freudianism (based on the pleasure principle which is basically a materialist concept). All these theories have collapsed in the 21st century. Creation is a fact. The entire universe is oriented to produce creative human beings in the image of their Creator. His presence pervades it. All of the universe is perfectly designed, in some sense, to support human minds.
To hear Marvin Olasky's complete interview with George Gilder, click here.

Marvin Olasky
Marvin Olasky

Marvin is editor in chief of WORLD News Group and the author of more than 20 books, including The Tragedy of American Compassion. Follow Marvin on Twitter @MarvinOlasky.


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