This, from a wonderful op/ed piece in the Wall Street Journal over the weekend entitled: From Phoenicia to Hayek to the ‘Cloud’ by Matt Ridley.
The crowd-sourced, wikinomic cloud is the new, new thing that all management consultants are now telling their clients to embrace. Yet the cloud is not a new thing at all. It has been the source of human invention all along. Human technological advancement depends not on individual intelligence, but on collective idea sharing, and it has done so for tens of thousands of years…
Knowledge is dispersed and shared. Friedrich Hayek was the first to point out, in his famous 1945 essay “The Uses of Knowledge in Society,” that central planning cannot work because it is trying to substitute an individual all-knowing intelligence for a distributed and fragmented system of localized but connected knowledge.
So dispersed is knowledge, that, as Leonard Reed famously observed in his 1958 essay “I, Pencil,” nobody on the planet knows how to make a pencil. The knowledge is dispersed among many thousands of graphite miners, lumberjacks, assembly line workers, ferrule designers, salesmen and so on. This is true of everything that I use in my everyday life, from my laptop to my shirt to my city. Nobody knows how to make it or to run it. Only the cloud knows…
…good ideas can spread through trade. New weapons, new foods, new crafts, new ornaments, new tools. Suddenly you are no longer relying on the inventiveness of your own tribe or the capacity of your own territory. You are drawing upon ideas that occurred to anybody anywhere anytime within your trading network….
That is what trade does. It creates a collective innovating brain as big as the trade network itself.
So far this is already inspiring. We are advanced by the collective brain power of everyone we trade with… need there be any further discussion of free markets and open trade? Why, other than in pursuit of enslavement, would anyone suggest limiting the “collective innovating brain?” But there’s more; there’s reason for unbridled optimism. Not just a positive outlook, not just a subtle feeling that the world will Read more