Money, wealth, and capital can move around the world in mere seconds. Within any economic structure, capital is the building block of prosperity. With relatively new ease of access to resources, how has that changed our society? Developing nations no longer need to start from scratch, or wait long periods of time to meet demand for certain items. This has fundamentally changed what is considered capital along with the way our world and our governments function.
Author and Professor Richard B. McKenzie puts it in these easy to understand terms, “The big difference is not so much the need for capital, although capital is becoming more important in production processes than labor. Capital has become transformed; it’s become brain-powered; it’s become information. It used to be that capital was concrete and steel and mile-long plants. These plants were very immobile; very difficult to get up and move. As a result, governments could think of this form of capital as something like an oil well. They could put a head on it and drain it dry. When capital is in the form of brain power and information, it basically can be transformed into electrical impulses that can be sent around the world at the touch of a few keys on the computer, and at the cost of a telephone call.”
How else has this technological surge transformed our world? Listen to the full discussion in the latest episode of the Free To Choose Media Podcast to find out.