Economic Alchemist 1990 Page 2

"The Economic Alchemist," by Paul Wirth, Lehigh Alumni Bulletin, October 1990.

Page 1 2 3
Thrift and Trust: Twin Victims of the S&L Crisis

More on
Unlimited Wealth

Explains how we live in a world of unlimited physical resources because of rapidly advancing technology.

"Unlimited Wealth: Paul Pilzer Tells Where to Find the New Prosperity," by Duncan Maxwell Anderson, Success Magazine, October 1993.

"Unlimited Wealth," by Paul Zane Pilzer with introduction by Bob Meyer, Barter News, Sept 1992.

"Renaissance and Real Estate," by William Summers, Financial Enterprise--The Magazine of GE Capital, Fall 1989.

page 2 of 4
     "The classic definition of wealth is that wealth equals physical resources," says Pilzer. "I say bunk. Wealth equals resources times technology. Only 100 years ago, oil was nothing more than a black goo that ruined the water supply. Technology has made it a resource."
     Technology also determines the supply of resources. An automobile fuel injector which doubles a car's gas mileage effectively doubles the supply of oil, he reasons. Super-tankers and transcontinental pipelines have the same effect, by creating new ways to deliver oil to market.
     "An economist says, "There's a pie here, and economics is how you cut it up to determine who gets what.' That's what you're going to study in every economics class. An alchemist says, "Throw away the knife and let's just bake a bigger pie.'"
     Even more exciting than "supply-side alchemy," says Pilzer, is "demand-side alchemy." He argues that technology determines which products are in demand. Henry Ford's new technology was a luxury when his cars first hit the market; today automobiles are a necessity. The same principle applies to fashion and consumer goods, he says.
     The rate of growth in the economy is defined by Pilzer's "technology gap," those existing technologies that have not yet been applied to a manufacturing process or product. The larger the technology gap, the greater the potential for economic growth. In periods of economic decline, Pilzer says, either the technology gap is small or technology is not being applied as rapidly as it could be.
     The first true example of alchemic management, Pilzer says, was World War II's Manhattan Project. The technology for an atomic bomb did not exist at the time and had to be

created, assembled and put to work. The American effort to land a man safely on the moon was a similar example.
     Alchemic economic growth would not be possible without advanced communication methods to disseminate technology. The first breakthrough was the written word, says Pilzer, but it was the printing press--and later the computer--that made the rapid spread of technology possible. "We've taken the computer off the desk of the accountant and the engineer," he says, "and put it on the lathe and in the car." Advances in communication and exponential growth in technology have brought technology utilization to a "critical mass" that allows breakthroughs to be seized and put to work instantly.
    "We are in the ninth year of what seems to be a multi-decade economic expansion of unfathomable proportions," Pilzer says. "The reason economists can't understand it is because the economy is growing at an unbelievable pace due entirely to technology."
     How will his alchemy theory go over with academics, business leaders and the public? Pilzer is realistic. "This could be the next theory of relativity. Then again, it could be the next cold fusion. But I won't really know until the book comes out and everyone has read it and they either rip it apart or they say it's the greatest thing since sliced bread."
     "I was one of those nerdy types. You know--really into science and always carrying my chess set."
     It was a characteristically frank assessment of his early days at Lehigh, and a perfect way for Paul Zane Pilzer to break the ice with a group of students who were not quite sure what to expect from a man who
                           prev          next

PUBLICATIONS

		The Next Millionaires Explains how you can become of the the ten million new millionaires that will be created between 2006-2016.		The New Health Insurance Solution How to get cheaper, better health insurance from birth to old age without an employer plan.		The New Wellness Revolution How to make a fortune in the next trillion dollar industry--preventative medicine and wellness.
		New York Times Bestseller God Wants You To Be Rich Explains how our economic system is based on our biblical heritage, and you can prosper materially and spiritually.		Fountain of Wealth Award-winning 6 CD (or cassette) audio series explains the new opportunities for creating wealth in the 21st century.		Other People's Money Pilzer's first book, exposing the S&L Crisis and the history of savings in America.

Unlimited Wealth
Pilzer's seminal work explaining how we live in a world of unlimited physical resources because of rapidly advancing technology.

The Next Trillion
Why the wellness industry will exceed the $1 trillion health care (sickness) industry in the next ten years.

Real Estate Review
Collection of articles on the guidelines for success in commercial real estate investments.

The Wellness Revolution
How to make a fortune in the next trillion dollar industry-- preventative medicine and wellness.