Businesses cannot have perfect knowledge and supply, leading to a slight surplus in production.
Resources are not finite, but expand as knowledge and capabilities grow, allowing for continuous innovation and discovery.
Deep dives
The fallacy of expecting perfect knowledge and supply
In discussing the alleged wastefulness of Amazon and the criticism surrounding it, the podcast highlights the fallacy of expecting a business, like Amazon, to have perfect knowledge and supply. The hosts argue that it is impossible for any business to have perfect knowledge of precisely how many products need to be made, leading to a slight surplus in production. This surplus is a common practice, as businesses aim to meet demand adequately. They critique those who argue for either limited production or a predetermined cap on product variety, questioning when and who decides that there are 'too many' shoes or resources.
The fallacy of finite resources and knowledge
The podcast challenges the concept of finite resources and the assumption of stagnant knowledge. It questions the idea that the Earth's resources are running out and suggests a more macro perspective, exploring the vastness of the universe and the potential resources it holds. The hosts argue that resources are not fixed but rather expand as our knowledge and capabilities grow. They highlight how various substances, from coal to uranium, were once considered worthless but have become valuable resources through advancements in knowledge and technology. This challenges the notion that resource conservation should be based solely on current knowledge, as knowledge itself is a limitless resource that allows for continuous innovation and discovery.