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You mean an industry where, according to Moore's Law, things get twice as powerful for half the money every 18 months is deflationary? :D I admit I've been thinking that for some time as well.

That's part of it but the real issue is that 21st Century information technology is NOT governed by the Law of Diminishing Returns and therefore classical economics don't apply.

Read up on Law of Increasing Returns. Try economist Brian Arthur of the Santa Fe Institute and Stanford...

Simply it boils down to the fact that there is no limit to creating transistors and collecting intelligence, a.k.a. data.

All the Fools who are explaining the issue in terms of Diminishing Returns and classical economics are wrong because they are using the wrong tool. New Paradigm and all that.

The Captain
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