Sublime

Second Machine Age, written by the MIT economists Erik Brynjolfsson and Andrew McAfee.

transaction cost economics; there’s too much rich and excellent work. Instead,

As Brynjolfsson and McAfee point out in The Second Machine Age, over the past thirty years, the United States has seen steady growth in worker productivity but stagnant growth in median income and employment. Brynjolfsson and McAfee call this “the great decoupling.” After decades when productivity, wages, and jobs rose in almost lockstep fashion, t

simply the growing pains of a young colossus. As has often been said, we tend to overestimate the potential of new technologies in the short term, but underestimate it in the long term.

“Schumpeterian,” enabling companies to scale up rapidly and gain dominant market share, but also making it easier for new entrants to supplant them and increase turbulence.

network effects (the more good investment algorithms it holds, the more capital it will attract; the more capital it holds, the more algo traders it will attract),