From "Entropy" to "Limit": An Inheritance and Extension of Economic Evolution Theory

— Based on Critical Reflection and Reconstruction of the “Economic Entropy Increase” Theory Abstract Have we been using the wrong “causal theory” to analyze economic crises? When scholars are obsessed with explaining “why a bubble bursts,” they overlook a more fundamental question: the expansion of a bubble itself is an inevitable process of a system approaching its structural limit. This paper derives its reasoning from reading and reflecting on the theory proposed by Qilin Guo in Economic Entropy Increase. I deeply reflect on and inherit this “economic entropy increase” theory, believing that using “entropy” to explain the directionality of economic evolution is correct, but it fails to reveal the underlying driving force. To this end, I propose a more precise diagnostic framework — the “Moore’s Limit” (or “Moore Limit”). The core argument of this framework is: any economic paradigm (whether an enterprise, an industry, or a state machine) will inevitably hit a “ceiling” determined by its own structure after sustained expansion. This limit is not a “result” or a “fate,” but an observable, computable, and perceptible critical point. This paper systematically demonstrates the applicability and operability of this framework through four differentiated cases: the “scale ceiling” in the clothing industry, Apple’s “dimensional upgrade and lockout” strategy, 3M’s “failed product database” compound interest mechanism, and a macro-level comparison between Roosevelt’s New Deal and the British royal pardon. In conclusion, this paper finds that the dissolution and breakthrough of “Moore’s Limit” is the essence of economic evolution. It provides a new theoretical perspective and practical tools for identifying early warning signals of crises and formulating strategies that transcend cycles. Keywords: Economic entropy increase; Moore’s Limit; Paradigm shift; 3M model; Apple ecosystem; Consumption bottleneck; Capital legitimacy