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Technology Stocks : The *NEW* Frank Coluccio Technology Forum

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From: Frank A. Coluccio11/16/2007 2:13:13 PM
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On Free
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Technology Wants To Be Free
Kevin Kelly - The Technician
November 14, 2007

[FAC: I found this essay in the Gilder Friday Letter earlier today. When chatting with, or listening to, George, one soon finds that it's all about that elusive unit of currency called the asymptote ...]

Last February during a break at the most recent TED conference I was speaking to Chris Anderson, current editor in chief at Wired about his planned next book, called FREE. ... Nearly 10 years ago I had written a chapter in my thin New Rules for the New Economy book that focused on the role of the free and the economics of plentitude. I called that chapter “Follow the Free.” Almost nothing I’ve written has been as misunderstood as this short chapter. I’ve not had a Q+A session since then without this question coming up: “You say we should embrace the free. How can everything be free?”



The truth is that the concept of the free is easily misunderstood. Thus I applaud Chris’ brilliance in devoting a whole book to unraveling the mess. There’s much to be said about it, and even then we’ll just be at the beginning of understanding what free means. I originally thought I was done with the subject 10 years ago, but the continual questions, as well as the continual evolution of the commons, new social dynamics, new technological disruptions, and further research in the decade since have surfaced some new ideas. In particular I’ve concluded the free is deeply entwined into the very foundation of technology. I was sharing some of those emerging half-baked thoughts with Chris in the lobby of TED. Since that conversation I’ve discovered that the tie between technology and the free goes even further than I thought. My current conclusion can be summarized simply: Technology wants to be free.

Let me state it more precisely: Over time the cost per fixed technological function will decrease. If that function persists long enough its costs begin to approach (but never reach) zero. In the goodness of time any particular technological function will exist as if it were free.

This seems to be true for almost anything we make: basic things like food stuffs and materials (often called commodities), and complicated stuff like appliances, as well as services and intangibles. The costs of all these (per fixed unit) has been dropping over time, particularly since the industrial revolution. According to a 2002 paper published by the International Monetary Fund (“The Long-Run Behavior of Commodity Prices” by Paul Cashin and C. John McDermott, PDF: tinyurl.com ), “there has been a downward trend in real commodity prices of about 1 percent per year over the last 140 years.” For a century and half prices have been headed toward zero.

Continued with graphics at:

kk.org

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