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Right, that is the confusion that I was trying to highlight (although the general point about greater efficiency is quite correct). With a product like Netflix
by hogFeast 5y ago
Right, that is the confusion that I was trying to highlight (although the general point about greater efficiency is quite correct).
With a product like Netflix, is that the result of greater productivity? Did Netflix invent some kind of new food that meant humans who made the films or created the website could work twenty hour days for the same wage? The innovation was cutting out other parts of the distribution chain, not more efficient energy usage.
It isn't about more stuff either but more inputs. And there has been a significant increase in energy capture (I was talking about a far larger timescale, but this is over the 20th century) but there has been a larger increase in inputs (and a small increase in efficiency, although one that continues to compound), that is why climate change is occurring. Intangibles are neither here nor there because humans still expend calories (real solar energy) to produce those intangibles.
To say this another way, the value of an intangible product is (usually) closely related to the productivity of other parts of the economy. A film in Mauritanian street market is not worth as much a film on the Apple Store in the US. That elides the point that growth either comes from growth in inputs, or growth in efficiency of input usage (the increase in energy capture is, I think, efficiency...but it is usually not what people are thinking of when they think about efficiency).