This paper, using Algorithmic Information Theory (AIT), argues that once energy resources are considered, an economy, like an ecology, requires continuous energy to be sustained in a homeostatic state away from the decayed state of its (local) thermodynamic equilibrium. AIT identifies how economic actions and natural laws create an ordered economy through what is seen as computations on a real world Universal Turing Machine (UTM) that can be simulated to within a constant on a laboratory UTM. The shortest, appropriately coded, programme to do this defines the system’s information or algorithmic entropy. The computational behaviour of many generations of primitive economic agents can create a more ordered and advanced economy, able to be specified by a relatively short algorithm. The approach allows information flows to be tracked in real-world computational processes where instructions carried in stored energy create order while ejecting disorder. Selection processes implement the Maximum Power Principle while the economy trends towards Maximum Entropy Production, as tools amplify human labour and interconnections create energy efficiency. The approach provides insights into how an advanced economy is a more ordered economy, and tools to investigate the concerns of the Bioeconomists over long term economic survival.
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