The concept of entropy is very useful in terms for understanding just
about everything.
Its origin is in laws of nature-Specially second law of
thermodynamics, where it hold the true state of a system(particluraly
closed system).
"In the simplest of terms, every closed system will ultimately degrade
toward a state of maximum entropy."
The simplest example is our human body is very much a closed system, and
we are well aware, will degrade until it ceases to exist.
Second example, Religious practices, it was intentially invented
to control the society by means of power/fear. But for that it
is required to make and give stronge boundary of rules and laws. They
were promising security, peace, growth. But we can see, at present it is
turned to system of slaves, hollow words, false truth.(A close
will degrade itself).
Third example, monetry policy, the money itself is decresing its
value.We created this system to give finacial stability, but as
we are more vulnerable to the threats, a threats which has power to
destruct the whole economy.The more we try to tighten the system,
the more it will degrade.
other example, Big Corporations- like TOYOTA, Govenment-like
America(china),other government(their debts) and there are lots of more
example!
finally,it is impossible to halt entropy, what we can do is to well
aware of
changes and work on that.
As an investor I would contend, important to understand the notion of
entropy –
and to watch for it in your portfolio companies, in your bureaucracies,
and, on a more personal level,
your relationships and your health.
It was, perhaps, because of his own understanding of natural law that
Thomas Jefferson was heard to remark, “The tree of liberty must be
refreshed from time to time with the blood of patriots and tyrants.
It is its natural manure.”