wealthWe begin with the proposition that capitalism is not chiefly an incentive system but an information system. We continue with the recognition, explained by the most powerful science of the epoch, that information itself is best defined as surprise—what we cannot predict rather than what we can. The key to economic growth is not acquisition of things by the pursuit of monetary rewards but the expansion of wealth through learning and discovery. The economy grows not by manipulating greed and fear through bribes and punishments but by accumulating surprising knowledge through the conduct of the falsifiable experiments of free enterprises. Crucial to this learning process is the possibility of failure and bankruptcy.

From Knowledge and Power: The Information Theory of Capitalism and How it is Revolutionizing our World by George Gilder.

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Published: Dec 26, 2013
Author
George Gilder
George Gilder is the author of Wealth and Poverty: A New Edition for the Twenty-First Century. He is Chairman of George Gilder Fund Management, LLC, host of the Gilder Telecosm Forum and Publisher of the Gilder Friday Letter. He is also a Senior Fellow at Discovery Institute where he directs Discovery's program on high technology and public policy, and the former Editor in Chief of the Gilder Technology Report.
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