Thursday, April 28, 2011

Marx came the closest in DeLong's review of theory

DeLong reviews the economic theory, or rather recovers one of his many reviews.
Of course, the modern Shannon theorists get is exactly right, as near as we can tell.

We alternate between general gluts and general shortages because the economy depends upon quantization and quantization always results in a sparse solution set. The economy will accept nearly infinite volatility between state changes as long as the quant levels in production are maintained during the stable periods. We will use even violent means to arrive a a stability in which quants of goods are delivered with minimal redundancy.

Shannon and Huffman and Elliot the natural heirs to Marx.

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