BenevolentM -> RE: Raising the debt ceiling (1/14/2011 7:32:48 AM)
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ORIGINAL: Musicmystery quote:
The problem is we are not wise enough to manage such a system. Benev, That's really not it. A large part of my research 20 years ago, which then formed the basis of my practice, was how systems work. Individual decisions and common sense don't work in aggregate. Yes, that sounds silly, but it's demonstrable over and over, from business to government. There are many reasons why, but just for example, small, insignificant matters, when multiplied, become major factors, especially when system lags are introduced. Imagine you were in a foreign country and jumped into the shower, but didn't realize the hot water responded slowly. You would jump from freezing to scalding, back and forth, in continual frustration. Systems are like that. It's not that people aren't smart or reasonable. Rather, decisions and judgment that is perfectly sound and realistic based on what each individual independently sees are often very poor decisions systematically. What happens then is the individuals within the system blame each other as incompetent. I did a study on commission for my department a few years ago. Over 95% of faculty strongly support increased faculty development programs, and precisely for this explicitly stated reason, not prompted by the study (i.e., they independently added this reason)--to bring the other faculty up to speed. So our own studies show we aren't getting the results we want, and virtually all of the faculty feel it's because the other guy isn't pulling his weight. Clearly, putting those two facts side by side, that isn't the case. It can't be, logically. But, individual to individual, doing logical work in the classroom and seeing what happens in those individual classrooms, it all makes sense. Just not institutionally, because the individual can't see the effect systemically. This was the heart of my business practice too, before I was recruited to teach. Frustrated business owners didn't understand why they weren't getting better results, when they were doing all reasonable things. And they were--just not systemically. So I'd come in, coax them away from their old practices (usually with some resistance), and set up new structures that would guide people to the desired outcomes. Deming (the guy who turned around Japan) said "85% of the problem is in the system." And he's right. Design a good systemic structure, and it doesn't matter whom you put into the structure--and the same is true of a poor structure. Here's the problem for government. People react emotionally, not logically, and generally not by looking at data. Consequently, often the best, cheapest ways to do things are going to be vigorously opposed as wasteful and unfair. Programs meant to support one segment often benefit another. And people thus consistently vote against and scream about policies in their own best interest. Really, logically, it's not reasonable to believe the entire government is incompetent. In fact, government is staffed with highly competent people (who have no trouble at all entering the private sector, just to illustrate). But systems work differently than individual decisions with individual perspectives. And after all that, governance is making choices. We can't have everything. An accessible and interesting book on this subject, if you're interested, is Peter Senge's The Fifth Discipline. But bottom line, no, everyone isn't wiser than everyone else, despite what they think. Nicely put. What you are saying is not altogether untrue. The problem is it is 85% true. This makes the statement "Design a good systemic structure, and it doesn't matter whom you put into the structure." seem almost true. So it doesn't matter who is President, for example. The problem is people tend to think that if they got it 85% or better yet 95% right, that they can ignore the remaining 5%. This is a problem with automation. If you can automate 95% of your business, it is a powerful incentive to ignore the remaining 5%, but this leads to problems. That 5% is corrosive. Ignoring it causes the system to move, usually slowly, in the direction of insanity. Because it is slow, the process is unrelenting and insidious, yet something that can simultaneously be rationalized away. Modern economists have fallen into this trap. They have taken "Design a good systemic structure, and it doesn't matter whom you put into the structure." as an axiom. They forgot that it is only 85% true and it does matter who the President is. Efficiency is addictive. We have too much efficiency. The usual way to explain it is to say, Too much work and no play makes John a dull boy. It is the reason why the French are superior. It is the reason why we are having such a difficult time getting off of fossil fuels apart from the technical challenges. We are addicted to efficiency and are unable to think in other terms whereas the French are. Due to the very sort of ideas you advanced, we lost Vietnam; it was why the war was bananas. I fear that we have come to rely too heavily on our inherence as a nation on the foresight of our forefathers and have forgotten that though much was gotten right, our forefathers can only get the first 85% of it right for us. We have to pick up the other 15%, but if anyone hasn't noticed already. That last 15% that we haven't gotten right yet, isn't easy to get right.
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