I am new to this list. I am interested in cybernetic social systems.
I am attaching a couple of short letters to the editor I wrote recently
about one such system. Is anyone interested in this subject?
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THE TRAGEDY OF THE COMMONS
Garrett Hardin's essay "The Tragedy of the Commons" (1968) is a
modern classic in environmental literature. The "commons" refers
to the common resources that are owned by everyone. The
"tragedy" occurs as the result of everyone being free to
maximize one's own profit by exploiting the commons.
Hardin's essay goes something like this: Visualize a pasture
that is open to everyone. The carrying capacity of this pasture
is ten animals. Ten herdsmen are each grazing an animal to
fatten up for market. In other words, all the grass that the
pasture can produce is now being consumed by the ten animals.
Harry (one of the herdsmen) will add one more animal to the
pasture if he can make a profit. He subtracts the original cost
of the new animal from the expected sales price of the fattened
animal and then considers the cost of the food. Adding one more
animal will mean less food for each of the present animals, but
since Harry only has 1/10 of the herd, he only has to pay 1/10 of
the cost. Harry decides to add an animal and take a profit while
the other herdsmen suffer a loss. There is no "technological"
solution to this problem; only "political" solutions are
possible.
Shrinking profit margins force the other herdsmen either to add
more animals or go out of business. Overgrazing and erosion
destroy the pasture. The exploiter is exploited and the
consumer, consumed. This is called "progress."
To what end?
"In the end," says the Grand Inquisitor, "in the end they will
lay their freedom at our feet and say to us, 'Make us your
slaves, but feed us.' " (The Brothers Karamazov)
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GRESHAM'S LAW:
The English financier Sir Thomas Gresham (1519?-1579) founded the
Royal Exchange and he accumulated a private fortune while serving as
an adviser to Elizabeth I. His name was given to Gresham's law, the
economic principle (formulated long before his time) that "bad money
drives out good." When depreciated, mutilated, or debased money
(bad) circulates concurrently with money of high value (e.g. silver
or gold) the good money automatically disappears because of hoarding.
Ulimately, the system fails.
Today, systems that select for their own failure are often called
"Greshamite systems." MANAGING THE COMMONS -- Hardin and Baden
(1977).
Our society employs several deadly Greshamite systems. For example,
a pesticide kills all but resistant pests. As this process
continues, an ever-greater share of the pests are resistant to the
pesticide. Ultimately, the pesticide fails. The same Greshamite
process occurs with antibiotics to produce resistant disease.
What is surprising is that a Greshamite process is also causing our
political system to fail. Consider these two very different
candidates for public office:
The honest candidate (Ms. Honesty) believes in the principle: ". . .
all men are created equal." If Honesty is elected, she will treat
everyone equally.
The crooked candidate (Mr. Corruption) believes in loyalty over
principle: reward your friends and punish your enemies. If
Corruption is elected, he will reward everyone that helped him and
punish those who helped Honesty.
Our present political system is inherently biased against Honesty and
for Corruption because of our dominant ideology of economic
self-interest and what economists call the "Free-Rider Problem."
A public good is one that is available to everyone (e.g., the benefit
of honest government). Rational, self-interested individuals do not
ordinarily have an incentive to contribute to the provision of public
goods because they will receive them anyway. Instead, they decide to
become free riders. Here's how it works:
Victor (one of the voters) is dedicated to maximizing his personal
gain. Victor is a logical and rational Libertarian who believes (as
Adam Smith did) that if everyone works to maximize one's personal
gain, our entire society will benefit.
Will Victor help Honesty get elected? No. There is no reason for
Victor to help her because he will receive justice and fairness
anyway (a public good). Moreover, if Honesty is defeated, Corruption
would punish Victor for helping Honesty. Victor becomes a free
rider.
Will Victor help Corruption get elected? Yes. Victor can gain by
helping Corruption get elected because Corruption will reward him
(a private good). Moreover, if Corruption is defeated, Honesty won't
punish Victor for helping Corruption. Victor goes for the gold!
This bias "tends to elect" corrupt politicians (obviously, there are
many exceptions). As this process continues, an ever-greater number
of corrupt politicians are elected to office. Over time, political
corruption becomes the norm. Ultimately, our political system becomes
so corrupt that it fails.
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Aloha,
Jay
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"When Leon the tyrant of Phlius asked Pythagoras who he was, he said,
'A Philosopher,' and he compared life to the public festivals, where some
went to compete for a prize and others went with things to sell, but the
best as observers; for similarly, in life, some grow up with servile
natures, greedy for fame and gain, but philosophers seek the truth."
Diogenes Laertius
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