What is wealth according to Kunal?


Kunal Shah views wealth as essentially stored energy that human beings have learned to convert in various forms to our advantage. He explains that wealth is not generated from a zero-sum game but grows because humans uniquely convert different types of energy, such as nuclear or solar energy, into practical uses. This capacity to efficiently transform energy leads to increased wealth and GDP, especially noticeable since the industrial revolution and the discovery of electricity 1.

Moreover, Kunal emphasizes the importance of information asymmetry in wealth maintenance and growth. People or companies that can manage and exploit information better tend to create and sustain more wealth. This ability to handle information with fewer losses, contrasted with others, plays a significant role. He illustrates this with examples of how wealthy individuals and successful tech companies maintain their advantages through better information management 2.

Wealth and Energy

Kunal discusses his theory that wealth is nothing but energy stored and how humans are the only species that have figured out how to convert all forms of energy to our advantage to reduce our local energy consumption or local entropy. He also talks about the Maxwell's Demon problem and how it proves that entropy is not a law.

The Knowledge Project

Core Human Motivations | Kunal Shah | Knowledge Project 141