Thursday, February 20, 2014

Productivity and roundaboutness

What happens when we got a huge productivity shock like electricity to the home? We got a great variety of home appliances powered by electricity.  This is a rebalacing of distribution, and should be price neutral. The electricity network thus grows in depth and breadth, and the flowering of new products is the distribution rebalancing by taking advantage of a cheap new resource.

The problem we have with tech titans today is their control of the software chain and they bundle the new applications. The counter force are new tech start ups trying to build breadth, or unbundle the applications.

The secstags are the result of government no longer able to deliver a breadth of applications because the mall/large state gap is to expensive to DC to bridge. That gap is getting worse.

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