] The information economy is likely to be a volatile,
] cyclical, unstable mess. The problem is not the "creative
] destruction" one would expect in an innovative economy,
] but the structural instability of an economy whose major
] products have very low marginal costs and hence prices,
] but are not low-cost to produce. The notion that an
] information-based economy will be inherently prosperous
] must be revised for a less optimistic scenario.

This connects with Jeremy's observation about the biotech industry having the same problems as the music industry. The work that matters is thought work. Our economy is not designed for thoughts. It is designed for things. Intellectual property is a compromise that allows thoughts to work like things. As more and more of our economy consists of thoughts and not things the compromise becomes more and more strained. Its going to pop. There is no alternative because we trained ourselves to ignore critical thinking about economic systems as a defense mechanism against the communists.

This is a black hole, and the only way to avoid getting sucked through it is to own a lot of real estate.

Eli Noam: Information Economies are inherently unstable