John is en fuego today:
.….In the last thirty years, we’ve seen a shift in the technological substrate. This new susbstrate is increasingly a family of technologies related to information networks.
As this new substrate begins to take control, we’re going to need new management forms. Both bureaucratic and market systems are proving insuffient solutions to the challenges of a networked age.
In both cases, the emergence of a global network is eroding the efficacy of bureaucracy and markets as solutions. How? One reason is scale.
A global network is too large and complex for a bureaucracy to manage. It would be too slow, expensive, and inefficient to be of value. Further, even if one could be built, it would be impossible to apply market dyanmics (via democratic elections) to selecting the leaders of that bureaucracy. The diversity in the views of the 7 billion of us on this planet are too vast.
In terms of markets, a global marketplace is too unstable. Interlinked, and tightly coupled markets are prone to frequent and disasterous failures. Additionally, a global marketplace is easy for insiders to corrupt and rig, as we saw with the 2008 financial melt-down. Given instability and unmitigated corruption, markets will fail as a decision making mechanism.
So, what’s going to replace bureaucracy and markets?
Read the rest here.
In very strong agreement with John. I like markets and think they produce efficient and optimized results for many things ( not all things) but free markets currently face massive (and sadly bipartisan) efforts to rig them by the oligarchy here at home, much less in autocratic states where the practice of state socialism, kleptocracy and government by mafia or tribal/sectarian minority is the norm. People will seek work-around structures to adapt, thrive and evade extortionate schemes by elites that have hijacked the state.
Hat tip to Lexington Green