Book Summary: “The Origin of Wealth” by Eric D. Beinhocker

“Evolution is an algorithm; it is an all-purpose formula for innovation, a formula that, through its special brand of trial and error, creates new designs and solves difficult problems.”

The Ratchet of Technology, a site by Michael Magoon

Title:The Origin of Wealth, Evolution, Complexity and the Radical Remaking of the Economics
Author: Eric D Beinhocker
Scope: 4.5 stars
Readability: 3.5 stars
My personal rating: 5 stars
See more on my book rating system.

If you enjoy this summary, please support the author by buying the book.

Topic of Book

The economy is a complex, adaptive system that evolves in ways similar to how biological organism evolve in nature. This means that we have to reconceptualize economics.

Key Take-aways

  • Traditional economics assumes that the economy is a closed-stable system. Because of this assumption, economist cannot answer the most basic question: where did the economy come from?
  • The actual economy is an open, unstable system.
  • Wealth creation is the product of a simple, but profoundly powerful, three-step formula— differentiate, select, and amplify.
  • The three-way coevolution of Technology, Cooperation, and Business Models that accounts for the patterns of change…

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