How the Computational Capacity of Economies Explains Income
Category: WORLDPOST
Economies are computers, and the capacity of an economy to generate income is a side effect of that economy's computational capacity. This helps explain international differences in income, as it implies that economies that embody vast computational capacities, such as the economies of South Korea, Taiwan or Silicon Valley, should be richer than those that struggle to compute, like the economies of many Latin American and Sub-Saharan countries.
By Cesar A. Hidalgo, ContributorAssociate Professor, MIT Media Arts and Sciences, 2015-06-29