6 2. FROM AN UNSUSTAINABLE TO A SUSTAINABLE PROGRESS OF MOORE’S LAW
strated an EUV tool capable of providing the necessary source power concentrations for sustaining
production volumes.
is evolution of EUV lithography would again make a contribution only to the supply
of silicon wafers. e relentless progress of Moore’s Law, since Gordon Moore made his fa-
mous observation in 1965, has essentially been reducing manufacturing costs by scaling geome-
tries, thereby reducing prices for consumers while providing silicon with a higher performance.
e progress of Moore’s Law has essentially been the progress of supply-side economics. ere
has been little to no incentive to boost consumer demand in the U.S., as well as global, econ-
omy besides luring consumers into an unsustainable debt. e term “supply-side economics” was
thought, for some time, to have been coined by journalist Jude Wanniski in 1975, but this term
“supply-side” (“supply-side fiscalists”) was first used by Herbert Stein, a former economic adviser
to President Nixon, in 1976, and only later that year was repeated by Jude Wanniski.
Its use connotes the ideas of economists Robert Mundell and Arthur Laffer. Supply-side
economics is likened by critics to “trickle-down economics,” a theory that believes money trickles
down from the producers to the consumers. Trickle-down economics advocates that producers
are job creators in an economy and, hence, it supports giving tax cuts to the producers as a way to
boost economic growth so that producers can hire more employees. However, there is a flaw in
this approach because, if the producer is not able to sell what he/she has already produced, why
would the producer consider hiring more employees (even with an added incentive of tax cuts) if
the consumer demand for his product does not increase?
In an interesting article, “Reagan: e Great American Socialist,” published on
Truthout.org, economist Ravi Batra argues that the supply-side economic policies adopted by
Ronald Reagan’s economic advisors in 1981 resulted in budget deficits soaring from 2.5% of GDP
to more than 6% of GDP, alarming financial markets, sending interest rates sky-high, and cul-
minating in the worst recession since the 1930s. Reagan’s supply-side economic policies resulted
in the wealthiest facing a 28% tax rate, while those with lower incomes faced a 33% rate. In addi-
tion, the bottom rate climbed from 11% to 15%. is is how supply-side economic policies since
their inception have increased the income disparity across U.S., as well as global, economy. is
is verily why free-market capitalism has been transformed into crony capitalism over the years,
which is now bringing this global economy and global semiconductor industry to a standstill due
to poor consumer demand resulting from a poor RoIs.
2.3 FREE-MARKET ECONOMY–A PATH TOWARDS
SUSTAINABLE PROGRESS OF MOORE’S LAW
We need to implement economic solutions for sustaining the progress of Moore’s Law through
establishment of a true free-market economy where the real job creators in the economy are
not only producers but also consumers. Without a healthy consumer demand for the latest and
greatest electronic products, any further investments in the progress of Moore’s Law—transitions
2.3. FREE-MARKETECONOMY–A PATH TOWARDSSUSTAINABLE PROGRESSOF MOORE’S LAW 7
to 450 mm silicon wafers and EUV lithography improvements—are bound to provide a poor RoIs
for the producers.
If free-market economic reforms can usher in a healthy consumer demand for electronic
products, then the RoIs for the producers can also be ensured. Hence, we can conclude that the
slowing of EUV rollout, halting of 450 mm wafers, and uncertainty in economic demand resulting
in poor RoIs beyond 14 nm technology node is essentially a failure of supply-side economics and
could not be claimed to be the demise of Moore’s Law.
e minimum necessities of human society should be met through a growth in consumer
purchasing power in the economy. Semiconductor industry professionals are not only to recognize
the importance of higher consumer purchasing power in the economy but should also be actively
involved in ushering true free-market economic reforms that guarantee the growth in consumer
purchasing power in the economy for the continued progress of Moore’s Law. It also becomes a
social responsibility to provide individuals with higher purchasing power. When such free-market
reforms based on mass capitalism are carried out, there would be special incentives provided to
individuals with special abilities. Each and every human being requires clothes, medicine, housing
accommodation, proper education, food for proper nourishment, etc. ese demands must be
fulfilled by means of providing work by creating jobs and not by means of offering any kind of
dole.
While free markets ensure that wages catch up with productivity, there should be special
amenities provided to intellectuals, scientists, and people performing special services. However,
when offering these amenities, it needs to be ensured that the consumer purchasing power of
the overall economy also grows, while minimizing the growth of huge disparities in the econ-
omy. ere will always be a gap between the minimum necessities, which decide the standard of
living, and special amenities that are offered to meritorious people. A free-market approach to
minimize the gap between minimum necessities and maximum amenities is to raise the consumer
purchasing power through a productive use of technology, which would also boost the minimum
amenities for all. For example, in a certain country, leaders and intellectuals would require a luxury
car, and these should be offered to them because of their profound contribution to the society.
But after that endeavor, the buying power of other individuals should also proportionally increase
so that they are able to afford to buy at least a motor bike, if not a car.
However, in this process of improving the consumer purchasing power by productive use of
technology, it could be noticed that, after some time, the purchasing power of leaders and intel-
lectuals needs to be higher for them to be able to afford an airplane. In that regard, the consumer
purchasing power of the rest of economy (excluding the leaders and intellectuals) should also be
high enough (to keep economic disparity in check) so that they are be able to afford at least an or-
dinary car, if not a luxury one. Diversity is the inevitable law of nature. However, if this approach
is taken, then it would be possible to raise the standard of living for all citizens in an economy
while still rewarding hard work and merit. In fact, this approach would be a sustainable one, as
it would ensure that the consumer debt and national debt do not grow due to the growth in con-
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