Classical economics, with us still today, relied upon 19th-century ideas from physics about systems in equilibrium. On this account, shocks or inputs to the system eventually result in the system going back to equilibrium, like water in a bucket or a ball bearing in a bowl (or the body returning to “stasis” after “sickness”). Such systems are closed, stable, and predictable. By contrast, complex systems like ecosystems and economies (or hurricanes or Facebook) are open and never stay in equilibrium. In non-equilibrium systems, a tiny input can create a catastrophic change—the so-called butterfly effect. The natural, emergent state of such systems—open rather than closed—is not stability but rather booms and busts, bubbles and crashes. It is from this tumult, says Eric Beinhocker, author of the magisterial The Origin of Wealth, that evolutionary opportunities for innovation and wealth creation arise.

Liu, Eric; Hanauer, Nick (2011-12-06). The Gardens of Democracy: A New American Story of Citizenship, the Economy, and the Role of Government (Kindle Locations 325-331). Perseus Books Group. Kindle Edition.