{"id":190,"date":"2014-10-18T21:22:11","date_gmt":"2014-10-18T21:22:11","guid":{"rendered":"http:\/\/olduvai.ca\/?p=190"},"modified":"2014-10-18T21:22:11","modified_gmt":"2014-10-18T21:22:11","slug":"charles-hugh-smith-our-new-robot-overlords-the-third-type-of-capital","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=190","title":{"rendered":"charles hugh smith-Our New Robot Overlords &#038; The Third Type of Capital"},"content":{"rendered":"<p><a href=\"http:\/\/www.oftwominds.com\/blogoct14\/robot-overlords10-14.html\">charles hugh smith-Our New Robot Overlords &amp; The Third Type of Capital<\/a>.<\/p>\n<table border=\"0\" width=\"835\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td width=\"50\"><\/td>\n<td align=\"left\" valign=\"top\" width=\"600\"><span style=\"font-size: medium;\"><b>Our New Robot Overlords &amp; The Third Type of Capital<\/b>\u00a0<\/span><span style=\"font-size: small;\">\u00a0 (October 18, 2014)<\/p>\n<p><i>Fortune will instead favor a third group: those who can innovate and create new products, services, and business models.<\/i><\/span><b>A recent issue of\u00a0<i>Foreign Affairs<\/i>\u00a0sported a catchy cover teaser: Our New Robot Overlords.<\/b>\u00a0This brings to mind various sci-fi scenarios, but the actual article title is academic to the point of obscurity:\u00a0<a href=\"http:\/\/www.foreignaffairs.com\/articles\/141531\/erik-brynjolfsson-andrew-mcafee-and-michael-spence\/new-world-order\" target=\"resource\">Labor, Capital and Ideas in the Power Law Economy<\/a>.<\/p>\n<p>Rather than rehash the usual failed Keynesian Cargo Cult economics,\u00a0<b>the authors describe three powerful ideas that resonate very strongly with my own work:<\/b><\/p>\n<p><span class=\"Apple-style-span\">1. Digital technologies (networked software, automation and robotics) are radically reducing the need for human labor and the leverage of traditional capital (land, fixed assets and cash) globally.<br \/>\n<\/span><br \/>\n2. Premiums flow to whatever inputs are scarce. Labor and traditional capital are no longer scarce; what&#8217;s scarce is innovative, practical ideas. Ideas (for new models, products, services, processes, etc.) are a third form of capital that will accrue most of the rewards.<\/p>\n<p>3. This distribution of premiums\/rewards follows a power law, i.e. the Pareto Distribution where the &#8220;vital few&#8221; with the 3rd type of capital (good ideas) reap most of the rewards.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&#8230;click on the link above for the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>charles hugh smith-Our New Robot Overlords &amp; The Third Type of Capital. Our New Robot Overlords &amp; The Third Type of Capital\u00a0\u00a0 (October 18, 2014) Fortune will instead favor a third group: those who can innovate and create new products, services, and business models.A recent issue of\u00a0Foreign Affairs\u00a0sported a catchy cover teaser: Our New Robot [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[109,208,244,467,477,478,610,691],"class_list":["post-190","post","type-post","status-publish","format-standard","hentry","category-economics","tag-capital","tag-digital-technologies","tag-economics-2","tag-keynesian-economics","tag-labor","tag-labour","tag-pareto-distribution","tag-robotics"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/190","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=190"}],"version-history":[{"count":0,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/190\/revisions"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=190"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=190"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=190"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}