The implication of the second law is that if the system were ever to reach equilibrium it would be dead. In effect, TE classifies economy as a closed equilibrium system, which violates the laws of physics, as they are now known to exist. Beinhocker proposes an alternative to TE, which he terms complexity economics, CE.
The complex economy evolves according to the same laws as does biological evolution. Evolution is an algorithm for finding “fit” designs in enormous design spaces. It has been described as “creating design without a designer”. Three elements feature in the evolutionary process: variation within the population, selection of the fittest, and replication of the successful design.