Second Law of Thermodynamics May Explain Economic Evolution

Second Law of Thermodynamics May Explain Economic Evolution: "(PhysOrg.com) -- Terms such as the 'invisible hand,' laissez-faire policy, and free-market principles suggest that economic growth and decline in capitalist societies seem to be somehow self-regulated. Now, scientists Arto Annila of the University of Helsinki and Stanley Salthe of Binghampton University in New York show that economic activity can be regarded as an evolutionary process governed by the second law of thermodynamics. Their perspective may provide insight into some fundamental economic questions, such as the causes of economic growth and diversification, as well as why it`s so difficult to predict economic growth and decline."