Gary North argues that the exponentially falling cost of data will eliminate many government regulatory controls.
George Orwell was correct: we find it difficult to see what is under our noses. let me briefly mention what has been under my nose ever since I read this article over a decade ago. It means that, with respect to the most important transformation of modern times, the exponential declining cost of digital technologies, Keynesianism has not been able to deflect the spread of these technologies.
Keynesianism can affect which special-interest groups benefit and lose as a result of these technologies, because Keynesianism can control the allocation of physical resources. But Keynesianism cannot control the spread of information itself. This means that, at the core of the economic system, Keynesianism is impotent.
As bad as Keynesianism is, and as bad as regulation is, it can only marginally affect the transformations that are taking place today. These regulations can have major affect when they apply to individuals who are caught in the web of regulation. These regulations can affect the supply and quality of goods that are produced through large-scale physical production systems. The regulators can squeeze large companies. They can put small companies out of business. But what they cannot do is in any way retard the compound growth effects of information technology.
So, it really does not matter for the long run that the Keynesians are in charge. They can stretch out their control with respect to certain kinds of physical production. They can stretch it out with respect to certain kinds of licensing and regulation. But the steady compounding effects of the decline in the cost of information are going to overwhelm all attempts by all governments to keep social and economic change on government approved pathways. There really is no way for governments to do anything, including fighting a war, to stop the progress of digital technologies.
Regulatory actions can and do affect the kinds of innovations that take place. It especially can affect the kinds of applications of new digital technologies. These statist interventions are almost always negative. They protect some special-interest group. But, in the long run, meaning over the next 40 years, the whole Keynesian regulatory structure is going to collapse. Why? Because we are reaching an inflection point. We are reaching the point at which the exponential curve turns sharply upward. There is no way for the regulatory agencies to keep up with what is now taking place under their noses.
This may be true in some cases but Laboratory Information Management Systems (LIMS) have not reduced the demands of ISO inspectionism, just given them more to data inspect. In fact, Quality control software has been written that furthers ISO inspections but arguably does little to make them less burdensome.
It remains to be explained how the inspection industry is going to lose its coercive power as data costs fall. ISO management standards, the clever hybrid tools of a state-backed, private world-governance cartel, are protected from competition like certain national and international banking institutions.
Increasing quality data are the food of inspectors.
Victims of ISO management standards remain blinded by ignorance, fear, peer-pressure, manipulated markets and legislative coercion to continue doing things wrongly.