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You Have To Know About Artificial Intelligence!
The Invisible Hand of Capitalism is a concept I first came across in studying Adam Smith’s Wealth of Nations. Where he is attributed to be the discoverer of Capitalism. Economics is the system a society or group uses to allocate limited resources. For example, land. Should the farmer grow wheat or corn? How do we decide who grows the wheat, where do they grow the wheat, who harvests the wheat, who delivers the wheat and what do we make out of the wheat? The economic system we use to answer those questions is Capitalism. This is the system whereby the highest expected profit is used to determine the answers to the questions above. Profit is individualistic, it does not have to be money – though profit is usually used with the meaning of money. Profit in this case can be whatever is seen as valuable to the seller. The invisible hand is that the item that generates the most profit will be the chosen path. If a farmer makes more profit growing wheat than corn, then the farmer will plant wheat. If the farmer makes more profit growing corn, then the farmer will grow corn rather than wheat.
What we are seeing now is that the profit from companies that are making and using Artificial Intelligence is higher than the profits of companies that are not using artificial intelligence. We cannot predict the future although following profits will give us a trail of breadcrumbs to follow into the future. As we see profits shrink, we can expect that the company or industry is starting to die and is going away. As we see profits rise in an industry, we can expect that company or industry will grow. Obviously, caution is required. The quote above says it all. It is amazing that people do not learn from history. Investors will follow each other over the cliff chasing a company that is popular but not profitable. Popular must not be confused with profitable. Artificial Intelligence is not popular – most people dread it. Artificial Intelligence is profitable. Just like spell check as we all know we should be able to spell though we would be silly to write a paper and not use spell check.
