Stephen Wolfram: "After 50 Years, I Finally Know Why Entropy Increases"

After 50 years of contemplation, Stephen Wolfram believes he has finally understood why entropy increases, attributing it to the interplay between computational irreducibility and human observation.

• Entropy increase is linked to computational irreducibility and observer nature.

• Value in economics is proposed to derive from computational reducibility, saving human time.

• New methodologies are being applied to understand complex systems in economics and biology.

Stephen Wolfram has developed a new understanding of the second law of thermodynamics, proposing that the increase in entropy stems from the interaction between computational irreducibility in the universe and the observer's nature. He applies similar methodologies to fields like economics, where he is developing a 'proto-theory' of value based on computational reducibility, arguing that valuable things essentially save human time.

Understanding Entropy

• 00:00:00 Stephen Wolfram shares his 50-year journey to understand why entropy increases, asserting that his new theory connects computational irreducibility with our nature as observers. He notes the historical difficulty and confusion surrounding the second law of thermodynamics, despite textbook claims of its simple derivation, and has untangled its complex history to ensure his findings align with previous knowledge and experiments.

Learning New Fields

• 00:01:24 Wolfram describes his method for learning new fields, preferring to work out concepts for himself before studying existing literature, which allows him to see how his findings relate to historical developments. He finds this approach easier than absorbing complex formalisms from existing papers, though he sometimes discovers useful ideas in historical context. He is currently applying this method to economics, recognizing its complexity but expecting his computational methodologies to be highly relevant.

Computational Reducibility and Value

• 00:03:53 Wolfram's 'proto-theory' of value posits that value is fundamentally rooted in computational reducibility, which allows for shortcuts in processes that would otherwise be computationally irreducible. Because humans have finite time, anything that saves time or effort—like a pre-assembled smartphone versus raw materials—becomes valuable. This concept suggests that pockets of computational reducibility are the ultimate source of value, differing from traditional economic views that focus on scarcity of goods.

Application to Economics and Biology

• 00:05:47 The concept of computational reducibility can explain the value of inventions and mechanisms in economics and biology, where a discovered 'lump of reducibility' can be reused and built upon. This framework provides a way to understand both the function of things and the mechanisms by which they occur. Wolfram's broader work involves a blend of philosophical inquiry, computational experiments, and thorough historical contextualization of ideas.