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Eat People

March 21, 2013

http://www.andykessler.com/andy_kessler/2011/02/my-new-book-eat-people-is-out.html

Some rules to become a Free Radical – one that gets wealthy inventing the future by helping others live longer and better.

Rule #1: “If it doesn’t scale, it will get stale” To scale is to lower something’s cost and make it more abundant again and again. Computer technology has scaled according to Moore’s Law, doubling every 18 months, for quite some time now.

Rule #2: “Waste what’s abundant to make up for what’s scarce” Many examples of this, I believe the clearest is how much raw energy is wasted in the process of creating useful energy like electricity. AWS cost consistently and repeatedly drop prices and increase capabilities during a single year.

Rule #3: “When in doubt, get horizontal” By contrast, vertical corporation (reliques of the industrial revolution) do everything themselves from soup to nuts. Computer companies start off vertical building all hardware (chips, boards) and software (OS, apps) themselves. Now Intel and AMD make microprocessors, NVidia makes graphics components/GPUs, and Microsoft primarily builds software.

Rule #4: “Intelligence moves out to the edge of the network” Information is created on the fringes of the network, phones, laptops, other inputs to the network.

Rule #5: “Wealth comes from productivity; everything else is gravy” This rule elaborates on how productivity increase can create wealth rather than simply redistributing it in a zero-sum fashion.

Rule #6: “Adapt to humans; don’t make them adapt to you” Plug-n-play, Xbox kinect, and similar technologies focus on more intuitive human technology interactions.

Rule #7: “Be Soylent – Eat People” Increasing productivity is ultimately destroying jobs that can be. Examples, toll booth operators replaced by automated electronic passes. ATMs replaced many bank tellers, Orbitz.com Expedia.com Kayak.com replaced travel agents, and many more examples.

Rule #8: “Markets make better decisions than managers” Markets are all about price discovery.

Rule #9:  “Embrace exceptionalism” We all have equal opportunities to succeed, but people are obviously not equal with various examples. We all can not be Einsteins or professional athletes simply due to genetics.

Rule #10: “Be a market entrepreneur and attack political entrepreneurs” Political entrepreneurs hide behind licenses and other regulatory restrictions that limit competition.

Rule #11: “Use zero marginal cost to create a flood (or someone else will)”

Rule #12: “Create your own scarcity with a virtual pipe”

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