Linear Output and Exponential Output

To understand the essence of value, we first need to grasp the simple operational rules of this world, which can be divided into four main areas.

• Sources of human energy: agriculture, animal husbandry
• Energy sources that support society: electricity generation, coal, natural gas, oil, transportation
• Supporting industrial progress: Engineering, basic sciences
• Providing services: lawyers, financial advisors, advertising, marketing, etc.

Energy and raw materials are crucial components for maintaining the operation of the socioeconomic system; humans must have food to survive. Resources like coal and natural gas, derived from nature, are responsible for sustaining modern civilization. Agriculture, animal husbandry, and the food industry form the foundation of human life and support the entire economic system. However, these two aspects represent linear value—what you put in terms of time is what you get back, relying solely on human labor as the source of value.

The true catalyst for exponential development in society or civilization is Engineering, which can more broadly extend to these four fields: Science, Technology, Engineering, and Mathematics, collectively known as STEM.

These four domains explore the nature of how things work, using science to understand the world's operations, leveraging mathematics as a powerful calculation tool, finding more efficient methods through engineering, and applying technology in practical contexts. It's important to note that technology does not solely refer to computer science, nor is engineering limited to software engineering alone.

The invention of the steam engine drastically reduced human labor costs, allowing energy to be harnessed through boiling water and converting kinetic energy into work, thereby facilitating the Industrial Revolution and transforming human lifestyles. This is what exponential growth looks like—essentially altering the methods of working and liberating humanity from the depths of labor.

Continuing with examples, the discovery of electricity and the invention of the generator enabled humans to accomplish a variety of tasks using electric power. Refrigerators, microwaves, vacuum cleaners, and air conditioning are all inventions that have made it possible for people to enjoy convenient and comfortable lives. Behind these innovations are the experiments and ideas of one or a group of engineers. Today, computers and smartphones have become essential items in daily life, with the computing power of computers completely reshaping human ways of living. These are the best proofs of how technology can lead to exponential growth.

It is evident that if the world only had financial advisors, marketing directors, and similar roles, society would eventually collapse, as these individuals cannot provide the necessary resources for human survival; their means of creating value rely on manipulating capital.

The game set by this capitalist society suggests that once you have money, it's best to invest it in stocks, speculate in cryptocurrencies, or perhaps buy NFTs for a trendy edge.

But let’s not forget, human survival depends on energy, followed by ensuring the comfort of life. If what we do cannot directly or indirectly achieve these ends, we are merely playing a capital game.

Money itself holds little significance; it is the existence of value that matters. Money is simply a tool for the convenient exchange of value. If capital does not ultimately return to society, it becomes a zero-sum game.

I believe society needs more people engaged in STEM fields to make the world a better place and create exponential growth, rather than aspiring to be xxx managers, consultants, directors, or marketers, with passive income as life goals but failing to provide real value.

Today's society promotes investment, speculation, and leadership, which leaves me quite concerned. There are already too few engineers, and I truly hope these individuals do not waste their time and lives on such pursuits.

In the future, more labor-intensive jobs will be replaced—just look at the development of Copilot, which can assist in generating even some low-level code.

Summary

• Linear value: The foundation for maintaining the economic system
• Manipulating capital or social systems as value: Most managers and marketers fall into this category
• Exponential value: Systematically solving problems through STEM, saving significant time and labor costs, and improving quality of life, including roles like engineers, scientists, and inventors.

If you want to bring progress to society, seek professions or fields with exponential value; manipulating capital should not be our focus right now. Linear value jobs are the backbone of economic operations, but they are highly likely to be replaced by AI in the future.

As more people enter fields of exponential value, more innovations will arise. Electric cars, reusable rockets, VR, blockchain, IoT—various technologies continue to transform lifestyles and create positive feedback loops, leading to fewer work hours for humans, and perhaps one day, a reality where work is no longer necessary.

Some industries may not fit neatly into these discussions, but perhaps you can reflect on which category your industry belongs to: pure labor-based linear value, capital manipulation, or meaningful exponential value.

I believe Mr. Market articulates this well:

The highest return on investment is investing in yourself. Most wealthy individuals become rich before they start investing.

There are too many in management who occupy positions without contributing value; they acquire wealth by manipulating capital. However, value cannot be created from thin air, and the gap must be filled by exploiting those generating linear and exponential values—these individuals can be seen as the culprits of societal stagnation.

Unfortunately, far too many people in this world seek to enrich themselves through capital manipulation, providing no assistance in creating value for society. If the entire world embraces this notion of value, the apocalypse is indeed not far off.

Note

Many people subconsciously associate technology and engineering with computers, programming, and computer science. However, this article is not limited to these fields alone.