An analogy helped me better understand the 2025 Nobel Prize in Economics:
Imagine the beginning of humanity: each person fished their own fish daily. One day, someone had a revolutionary idea: decided to give up fishing and eating that day to dedicate their time and effort to another activity: building a fishing rod.
Result? The next day, it was possible to fish more fish in less time, freeing up hours for other innovations: nets, better hooks, boats. That's how humanity evolved.
Joel Mokyr, Philippe Aghion, and Peter Howitt won the 2025 Nobel for explaining this dynamic: sustained economic growth comes from innovation, which only happens when societies save resources today to invest in R&D tomorrow.
The problem? Since 1971 (end of the gold standard), our economy does the opposite of what the laureates recommend:
- Central banks print currencies that lose their purchasing power
- Population is incentivized to consume instead of save
- High time preference - "spend now, pay later"
- Reduction of resources available for investment in innovation
- Capital diverted to speculation instead of productive R&D
Solution? A monetary system that:
- Preserves purchasing power over time
- Incentivizes real savings
- Reduces time preference
- Reallocates capital to productive innovation
Remind you of something? Maybe Bitcoin?
#bitcoin
#btc
#nostr
