Knowledge and Power: The Information Theory of Capitalism and How it is Revolutionizing our World by George Gilder
Written by Eric Restrepo on December 15, 2018
What is wealth? Wealth as George Gilder defines it changed the way that I think about wealth management and investing.

"The key to economic growth is not acquisition of things by the pursuit of monetary rewards but the expansion of wealth through learning and discovery."
-George Gilder

According to George Gilder, legendary investor, writer, economist, techno-utopian advocate, and co-founder of the Discovery Institute, wealth = tested knowledge. He says that, "physical law dictates that matter is conserved: material resources have not changed since the Stone Age. All enduring economic advances come from the increase of knowledge through learning.

So the implication that he is making is that capitalism is not a system of incentives and rewards that drive economic growth. He is saying that at the heart of the best capitalistic system is one that is driven by information. Capitalism at its best is an information system and more importantly it is a series of learning curves that create betterment for the overall globe. 

He says the best way to create a system that reflects this overall view of the world and and the economic information system that undergirds it is to create and maintain a "Predictable Carrier." What then are the core values or principles that underly this system? They are as follows: Predictable Laws, A Spirit of Trust, The Rule of Law, and Strong Individual Families. This creates the basis for a strong economic information system.

Also core to his theory is that knowledge is hard to achieve and we have to be engaged in long term pursuits in order to discover it, because as information theory states: All information can be defined as surprise.

"All information is surprise; only surprise qualifies as information. This is the fundamental axiom of information theory. Information is the change between what we knew before the transmission and what we know after it."
-George Gilder

This book profoundly impacted me and changed the way I think. Part of the mission of our company is to help create a stable carrier.

How do you do that, you might ask?

Well one way that is mentioned in the book is the strengthening of families. The way that I see it, if I can help more people become savers and investors and help them preserve and grow their wealth in all forms, the more that individual families will thrive, creating a stable carrier for further economic advancement and benefit for all people. This is the mission of our company.

Please check out our Free Case Study with our latest thoughts around how to protect and grow your wealth and create abundance for you and your family.

ERIC RESTREPO


Eric Restrepo helps self-directed investors defy conventional wisdom and achieve true diversification. Eric is a financial consultant for today's self-directed investor. He is an intense researcher and student of Personal Finance, Money, Investing, and The Markets. Eric's clients range from everyday investors like you and me, to Multi Millionaire clients, all with the goal of building a resilient life that is self-directed and truly diversified.
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