Take a look at this YouTube video (“I, Pencil” video), this classic tale of how the economy works, and notice how there are entrepreneurs serving at every single step along the way even though the steps in the process are innumerable!
Watching this video will get you in the generous mood to praise the division of labor and the entrepreneurial spirit that drives this whole process from its humble beginnings all the way to the end. But the video also makes it evident that the division of labor and the entrepreneurial spirit are vital and powerful everywhere, either directly or indirectly, across the entire time horizon. Talk about roundabout production! Without capital these processes would come to a standstill. Think about that the next time someone who is indoctrinated in the ideology of statism misrepresents the importance of capital.
It is never too late to understand how the magnificent market process works. If, at every point along the production of every good and service, people understood the beauty and potency of the market process then all of humankind would greatly benefit – nay – the difference would be so monumental that it is almost incomprehensible. The human potential is immense but since we are living in the Dark Ages of economics that potential is miniscule in comparison to what is our inherent birthright. In that sense the people in the future will look back at these times and see the pervasiveness of economic ignorance.
What the entrepreneurial spirit has produced and what can be discovered by those who are entrepreneurial is the theory that can infuse a higher degree of purposefulness into human action. As a result of entrepreneurial discovery a new economic theory based on new economic models (which represent a new economic technology) has dawned on the horizon. Those entrepreneurs who alertly seek a better understanding of the market process will discover this theory. As this new theory is applied at each and every step the degree of social cooperation will improve almost exponentially.
This is the reason why entrepreneurship is in the early stages, but also, as this heightened understanding of the economy is applied to all stages – including the early stages – the miracles of the economy that were highlighted in the “I, Pencil” video will transform the actors (all humans), the activators (the entrepreneurs), and the economy. That is part of the reason the difference will be exponential.