The evolution of capital
The evolution of capital had gone through some of the interesting phases. Earlier land was the only source of capital, that one either has or not, it was such a capital that was not divisible at all. And that time the estimation of total capital was very easy. It was just the monetary sum of the fertile land.
Then came the era of industrial revolution when land was replaced by machines, building, furniture, material etc. it was still tangible.
Then comes the real intangible capital, which is in the form of Papers, duly signed and formatted even not in some cases. It was the dawn of all financial instruments when the paper representing tangible assets started being socially accepted. It increased the quantum of capital by manifolds. One of the most innovative products in the financial world today is Securitization, that allows creating more and more capital even out of Securities or Papers.
Capital is fast becoming “super-symbolic.”
Just as much of the power of modern science lies in longer and longer chain of reasoning, Just as mathematics build more and more complex structure, piling theorem upon theorem, just as a neuron creating more neuron to make a complex neural network for more and more memory. So, too, we are creating a capital of progressive derivation.
Then came the era of industrial revolution when land was replaced by machines, building, furniture, material etc. it was still tangible.
Then comes the real intangible capital, which is in the form of Papers, duly signed and formatted even not in some cases. It was the dawn of all financial instruments when the paper representing tangible assets started being socially accepted. It increased the quantum of capital by manifolds. One of the most innovative products in the financial world today is Securitization, that allows creating more and more capital even out of Securities or Papers.
Capital is fast becoming “super-symbolic.”
Just as much of the power of modern science lies in longer and longer chain of reasoning, Just as mathematics build more and more complex structure, piling theorem upon theorem, just as a neuron creating more neuron to make a complex neural network for more and more memory. So, too, we are creating a capital of progressive derivation.
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