Why Information Grows

Book Cover: Why Information Grows

"Hidalgo has made a bold attempt to synthesize a large body of cutting-edge work into a readable, slender volume. This is the future of growth theory." --Financial Times

What is economic growth? And why, historically, has it occurred in only a few places? Previous efforts to answer these questions have focused on institutions, geography, finances, and psychology. But according to MIT's antidisciplinarian César Hidalgo, understanding the nature of economic growth demands transcending the social sciences and including the natural sciences of information, networks, and complexity. To understand the growth of economies, Hidalgo argues, we first need to understand the growth of order.

At first glance, the universe seems hostile to order. Thermodynamics dictates that over time, order-or information-disappears. Whispers vanish in the wind just like the beauty of swirling cigarette smoke collapses into disorderly clouds. But thermodynamics also has loopholes that promote the growth of information in pockets. Although cities are all pockets where information grows, they are not all the same. For every Silicon Valley, Tokyo, and Paris, there are dozens of places with economies that accomplish little more than pulling rocks out of the ground. So, why does the US economy outstrip Brazil's, and Brazil's that of Chad? Why did the technology corridor along Boston's Route 128 languish while Silicon Valley blossomed? In each case, the key is how people, firms, and the networks they form make use of information.

Seen from Hidalgo's vantage, economies become distributed computers, made of networks of people, and the problem of economic development becomes the problem of making these computers more powerful. By uncovering the mechanisms that enable the growth of information in nature and society, Why Information Grows lays bear the origins of physical order and economic growth. Situated at the nexus of information theory, physics, sociology, and economics, this book propounds a new theory of how economies can do not just more things, but more interesting things.

Published:
Genres:

Right after being born in Saudi Arabia, I was taken to the Callen house. Since then, Bryan and I have travelled the world with our Citibank fathers and somehow ended up in LA together. There we'd run into each other at family gatherings and do something that no one else in LA seemed to be doing: we talked about books. Since Bryan was kind of a big deal, Hunter and Bryan hatched a scheme to use his podcast to get on their favorite authors and professors. Out of that evolved Mixed Mental Arts and this tribe. For me, the marriage of entertainment and education is a return to how things used to be before our culture split story into two separate things. It's exciting to be able to build on the work Katie O'Brien and I did for The Straight-A Conspiracy and expand it out to every area of life. While I play a series of roles in the Mixed Mental Arts community (including Shitty Dutch Uncle and Bryan's #1 fan) my favorite role is as Toto who pulls back the curtain and let's the world see that there are no wizards...only men and women who try and puff themselves up to seem important.

Leave a Reply

Your email address will not be published. Required fields are marked *