35. On Information:False Information Yields Greater Profits Than Counterfeit Goods

All human exchanges can be categorized into three types: information exchange, material exchange, and service exchange.

Both material and service exchanges rely on information exchange. For instance, when purchasing a product, we first learn about its details—thus exchanging information before the material transaction occurs. When we receive a service, we also first need to understand its content, meaning information exchange occurs before the service exchange. Thus, both material and service exchanges rely on information exchange to proceed.

However, information exchange does not necessarily require material or service exchange. For instance, conversational communication is a form of information exchange that does not depend on material or service exchange to occur. Beyond relying on information exchange, the goods and services exchanged in material and service transactions are automatically converted into information by the human brain for storage. For instance, when we purchase a cup, we naturally store information about its shape, color, and other characteristics in our minds.

Humans exchange information through five primary channels: sight, hearing, smell, taste, and touch.

The most common forms of information exchange occur through sight and hearing. Text, animation, graphics, and sound represent the primary forms of information exchange and dissemination today. Just as counterfeit goods persist in markets, false information inevitably circulates among transmitted data. Counterfeits endure because they yield substantial profits for forgers; similarly, false information spreads widely because it generates enormous benefits for its creators—benefits that far exceed those from counterfeit goods. Precisely because the profits from false information are so immense they defy description, governments are particularly fond of creating it. The more authoritarian the state, the more false information its government disseminates to society. These authoritarian governments not only create and spread false information themselves but also tacitly permit or actively encourage their sycophants to do the same. This is why the more authoritarian a state, the more anti-intellectual information it produces.

All information falls into three categories: factual information, performative information, and subjective information. Factual information represents objective truth; performative information constitutes human-orchestrated displays; subjective information offers personal commentary on facts or performances. Thus, any piece of information is either an objective fact, a human performance, or a subjective critique. To prevent the spread of false information, mandatory classification must occur at the source of information dissemination. For example, if you wish to publish a video on a public platform, you must clearly label it as fact, performance, or commentary before it can be posted. Otherwise, publication is prohibited. After labeling, if the label is found to be inconsistent with reality, the publisher faces consequences ranging from legal violations to criminal charges. For instance, labeling a performance as fact or labeling commentary as fact constitutes the dissemination of false information and should be penalized. If disseminating false information is done for financial gain, such behavior constitutes fraud and may amount to criminal fraud.

Of course, sometimes a piece of information contains elements that are factual, performative, and commentary. For example, in a narrative article, using various emotionally charged adjectives can make the same fact evoke two completely different feelings. This is a very popular method of creating false information today—it appears factual but actually conveys personal commentary. If the author classifies such content as factual, it constitutes the dissemination of false information; if categorized as commentary, it does not.

The fundamental purpose of mandating information classification is to prevent citizens from being deceived by falsehoods. Democratic nations absolutely prohibit any form of populist manipulation. A country saturated with false information cannot be considered democratic.