Very good comments.
Neven is correct on the direction of my intent.
Perhaps I should have provided more context to my reasons for posting this item in this topic. I am deep in several blogs and sort of lost track a bit of how much of the contents there existed here.
The source of the link is the NakedCapitalism blog. This blog is heavily invested in financial/banking/economics and their spillovers into real life (haha). NC is one of the most prestigious blogs in existence and it has direct input to policy makers and is widely read by Congressional staffers and everyone associated with very high level issues on their subject matter.
The other blog I peruse which impacts heavily on this subject (and is the prime source of the intent I meant to bring to the post) is Greer's blog TheArchdruidReport.
Aside from the link internal to the NC post, which would naturally be the meat of SATire's posts, above the comment by Yves was the following:
A second way that the economic thinking has arguably increased the propensity of complex systems of all sorts to fail is by encouraging people to see themselves as atomized agents operating in markets. And that’s not just an ideology; it’s reflected in low attachment to institutions of all sorts, ranging from local communities to employers (yes, employers may insist on all sorts of extreme shows of fealty, but they are ready to throw anyone in the dust bin at a moment’s notice). The reality of weak institutional attachments and the societal inculcation of selfish viewpoints means that more and more people regard complex systems as vehicles for personal advancement. And if they see those relationships as short-term or unstable, they don’t have much reason to invest in helping to preserving the soundness of that entity. Hence the attitude called “IBY/YBG” (“I’ll Be Gone, You’ll Be Gone”) appears to be becoming more widespread.
The internal link was clearly oriented towards 'machines' in the hardware sense. But 'machines' can also be referring to all kinds of structures in the markets, financial systems, mechanisms for governing, banking, politics and such. This is the types of complex mechanisms I was orienting towards. These systems are very complex and as our civilizational structures have become more 'advanced', if you will, all of these types of non-mechanical mechanisms have had to also become increasingly complex to deal with the additional failure modes each level of complexity brings weith it. Management and administrative overhead grows faster with increasing complexity than the benefits which are delivered by that additional complexity.
An example from my own experience. I spent many years as one of the USG's 'soldiers' in the fight against various terrorist entities. There was a system in place, budgets, personnel, many organizations, a complex web of contacts, arrangements with a host of non-US actors and so on. Just what you would expect. A significant, but not existential, problem was being dealt with.
From Yves post
how complex systems are prone to catastrophic failure, how that possibility is held at bay through a combination of redundancies and ongoing vigilance, but how, due to the impractical cost of keeping all possible points of failure fully (and even identifying them all) protected, complex systems “always run in degraded mode”.
So this is where we were at on the morning of Sept 11, 2001. And the system failed anyway. Yes we were running in degraded mode, but like Yves says the cost of having total security is impractically high.
What was the response on a global civilizational level? We added in a HUGE number of additional levels of redundant security systems. Added complexity, huge costs, very small additional benefits. Think the dept of Homeland Security, militarizing police forces, the stupid stuff at the airports and dozens of other measures. Then we also engaged in a couple of wars which lasted 10-13 years and ended up in inconclusive states, but were the genesis for the rise of ISIS. And the creation of additional civilizational failure modes which are far worse than the ones all this added effort since 9-11 was intended to deal with. Our reaction to a failure was to beggar ourselves and destroy a vast amount of wealth - to no effect other than to make ourselves weaker and more fragile.
So I would posit that, No, adding additional much more complex layers of mechanisms on top of the vast number of civilizational structures we have now will NOT make our civilization more stable. Just the opposite. Civilization is not analogous to ecosystems. Complexity works in opposite directions in their respective worlds. An ecosystem which is complex is clearly where you want to be. A civlization which is complex (especially extremely complex) is very fragile.
Globally we are in a position of declining per capita wealth and our ability to pay for the many levels of mechanisms is becoming more constrained every day. That 'degraded' mode which Yves referred to is getting more degraded all the time. This means we are hanging on the edge of complex system failures all over the place.
Some are going to happen and they will have big effects. We are at the point where dealing with further shocks like this means we will have to let go of other layers of redundancy elsewhere in order to pay for the new ones. If Bin Laden were alive today and you could ask him who won the confrontation between Al Queada and the US he would not hesitate to say that he won. I happen to think that as well.
So in my frame of reference we not only have the Black Swans which have the possibility to stair step us down the collapse slope we have the above types of complex systems failures to think about and maybe plan for dealing with as they will take us down that slope also.