RE: Krugman critiques Dow 36K

From: Max More (
Date: Fri May 05 2000 - 14:36:10 MDT

At 11:01 AM 5/5/00 , you wrote:
>connections in a network is proportional to the square of the number of
>participants--becomes apparent: most people have nothing to say to each
>other! By 2005 or so, it will become clear that the Internet's impact on the
>economy has been no greater than the fax machine's."
>This last statement seem extraordinary to me. I would have thought the
>market cap of Cisco alone is greater than the sum total of the world's fax
>machine industry (and already was in '98?). What am I missing?

Nick: I don't thinking you're missing anything. My take on Krugman is that
he has a very poor understanding of recent developments in the economy. He
couldn't be more wrong about the Net. I think we've barely seen the
beginning of its impact. (And those of you happily writing off Microsoft
had better take some Valium if their plans for Next Generation Windows
Services work out...) I've read a fair amount of Krugman. He's certainly a
good writer, but I find his economics mixed and his forecasts lousy. He's
written some good stuff, such as explaining the "Asian Miracle" in ways
that many others seem to have missed. But on the New Economy, there are
many better resources.

The future of the economy interests me so much that I'm thinking of putting
up a new section for the ExI website on the topic. In the meantime, if you
want lots of good information, go to and select the New
Economy topic (and related topics on N.E. Commerce, Business Architecture,


Max More, Ph.D.
President, Extropy Institute.
CEO, MoreLogic Solutions. or

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