To a Caveman Very Few Things Are Resources

This post is by naval from Naval

There was a time when coal wasn’t a resource

Brett: There was a story on ITV in the U.K. talking about how much supposed waste Amazon produces, that Amazon was routinely destroying a whole bunch of products.

I thought, “Why are these people inserting their opinion into a business that they know absolutely nothing about?” Would they prefer Amazon to have the perfect knowledge of precisely how many products need to be made? In other words, an epistemologically impossible situation to be in. Or would they prefer that Amazon made insufficient products, so the people who wanted to purchase them weren’t actually able to get ahold of them?

What Amazon does, of course, is make slightly more than what they need. That’s what happens in any business. They make slightly more than what they need now and again.

Naval: I once had a venture capitalist argue to me that there were too many kinds of shoes and it was an example of how capitalism had failed because nobody needs this many kinds of sneakers.

My question to him was, “When did you know that there were too many shoes?” What’s the point in history where we decide there are too many shoes? Before we needed more shoes because we needed more stretchy shoes, we needed more durable shoes, we needed thicker soled shoes, we needed lighter shoes, we needed all kinds of amazing shoe innovations.

And then at some point, somebody decides, “Actually we have enough shoes. Now we need (Read more...)