If haven’t yet, you should read Munger’s new book Tomorrow 3.0  , just published by Cambridge. Munger carefully explains how technology is reducing transactions costs in such a way that, very likely, in the near future the way we live and work, and our relationship to property, will change dramatically. We’re likely moving to a world where we will own very little and rent everything we need.

For those reading this blog, the book has even deeper interest. It’s not just a book about current events, making sense of Über, and what not. Rather, it’s also a theory of property rights. Why do property rights exist? Why do we have an interest in owning things?

Answer: Transaction costs. In general, we don’t desire to own goods themselves; we desire instead to have ready and immediate access to the services those goods provide. We bother with owning and storing goods because right now, with current technology, there’s no easy way to have the services goods provide on demand without owning things. But that’s about to change.