Leonard Read‘s 1958 essay "I, Pencil" is unmatched among all publications in economics in its success at conveying an immense amount of profound wisdom in a style so accessible and charming. (By the way, near the beginning of The Price of Everything Russ does a superb job of explaining how an economics professor might introduce this wisdom to students.)
My friend Roger Meiners recently created this PowerPoint presentation
to accompany his lecture on "I, Pencil." When Roger sent this presentation to me, he commented that his effort was much easier than Leonard Read’s effort of 50 years ago. "I just used Google to get many of the details and the pictures."
Think about it. Millions of persons unknown to Roger contributed their skills, knowledge, time, and effort to make it possible for him, in just a few minutes (and at zero marginal pecuniary cost!), to create a PowerPoint presentation that will enable him to deliver a great lecture to his students. How many people helped to build the computer he worked on? To construct the cameras that captured the images? To engineer the PowerPoint software? To create and maintain search engines on the web?
The answer to each of these questions, and to each of many other similar questions that could be asked about this single, today-very-ordinary task of creating a PowerPoint presentation, is "countless." In some cases hundreds of thousands of people; in some cases hundreds of millions — perhaps billions — of people.
No one knows how to make a PowerPoint presentation. No one could possibly know all that there is to know about making a PowerPoint presentation. The creation of such presentations requires the cooperation of uncountably large numbers of people from around the globe. And yet, like the quotidian pencil, PowerPoint presentations are made and consumed everyday, and at minuscule cost.
That is the power of markets.
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{ 8 comments }
Purdy power-full stuff there!! Invisible hands make my life better!!
PP files don't feed the starving masses…
Powerpoint slides don't feed the starving masses…
They don't? Millions in India who's lives have improved as a result of the technology economy would disagree. Millions of Chinese manufacturing the servers, smart phones, and laptops of this generation, who's living standard is improved from their often [not quite] subsistence farming might also disagree.
I’ve seen a few power point presentations result in much for the starving masses, but then again I think Crusader's tongue is far through his cheek.
Rudy!
Weren't you here when our resident Super-genius declared, "The invisible hand……YOU'RE FIRED!!!… well or at least demoted."?
You better look into whatever's feeling you up because it sure ain't no invisible hand. :p
Brotio,
I must have missed the super-genius’s wisdom. Fill me in, or is it a waste of time?
I wasn't an economics major but was exposed to Reed's pencil essay while taking Econ 103 at GMU several years ago…That one essay changed the way I view the world, even the way I think. Almost ten years later the "theme" of that essay probably crosses my mind at least once a week, sometimes more. Cool PowerPoint!
Rudy,
Since you asked, I'll gladly oblige. Here is the official record of our Super-genius' musings. It IS a waste of time, but it's also pathetically funny! :p
MUIR(STU)PIDITY OF THE (muir) DUCK
All of these are stands alone stupidity. Context is not necessary to understand that the person who created these is mentally defective.
1. “The rising income discrepancy is what prevents people from obtaining affordable housing.”
Posted by: muirgeo Nov 2007
or
2. “If you are advocating a free market system say for schools you need to show one that works.”
Posted by: muirgeo | Mar 10, 2008 7:24:41 PM
or:
3. "Suffice it to say individualism where ever it surfaces is ultimately self-destructive.”
Posted by: muirgeo | Mar 15, 2008 11:29:41 AM"
or
4. “Planning and tinkering will definitely have a place in creating a strong competitive market. The invisible hand……YOU'RE FIRED!!!… well or at least demoted.”
Posted by: muirgeo | Mar 17, 2008 9:13:45 AM
or
5. “Natural cycles will often effect(sic) conditions on a short term basis but will not effect the larger man made trends.”
Posted by: muirgeo | Mar 18, 2008 10:15:41 AM
or
6. “I honestly believe the principles I support would increase our liberty not decrease it.”
Posted by: muirgeo | Mar 18, 2008 6:57:16 PM
or
7. “5,000 year old vegetation has been found in multiple areas around the world in the paths of recently receding glaciers.”
Posted by: muirgeo | Mar 18, 2008 7:00:43 PM
or
8. “First , the idea of climates "natural course" is invalid. There's no magic here climate responds to things we understand pretty well.”
Posted by: muirgeo | Mar 20, 2008 9:02:34 AM
or
9. "When some one says the climate is warming because it is following its natural course they need to be more specific. That's all I'm saying. Is it warming from the Sun, El Nino…. what? And provide evidence."
Vidyohs… your ego so controls you. You should learn how to tame it. You'll be a happier person.
Posted by: muirgeo | Mar 20, 2008 10:28:10 AM"
or
10.”I compete with other doctors for my patients and market forces are somewhat in effect. A government single payor(sic) system could actually increase consumer choice and market competition.”
Posted by: muirgeo | Mar 21, 2008 9:10:06 PM
or
11. “ If I was(SIC) to summarize my position it would be that I believe we need more democracy not less ( ie. a government represents the needs of its people more then(SIC) of its economic institutions).
I believe in competitive markets but understand they work best with good regulation.
Posted by: muirgeo | Mar 26, 2008 12:56:01 PM
or
12. “Seriously, the only historical reference I can think of was back in the days of the feudal system. Then the markets were completely unencumbered. Property rights were strictly observed and all property was held by a minority of wealthy people with everyone else an indentured servant.”
Posted by: muirgeo | Mar 26, 2008 2:48:31 PM
or
13. “Poorly worded. Maybe qualifies for a murpidity but it's a fact that there is no "natural state" of climate. Indeed it's always changing.”
Posted by: muirgeo | Mar 28, 2008 1:30:17 PM
or
14. There will always be regulation. The key is to make it minimalist but effective. The biggest danger to effective regulation is allowing the regulated too near the process of making regulations and too near the process of enforcing them.
Posted by: muirgeo | Mar 31, 2008 1:41:01 PM