I've found "efficiency as the opposite of stability" a very powerful concept to think about - even though it's fairly simple, it seems to be almost a fundamental law. Whether it's about the economy at large, your own household, a supply chain, what have you - as soon as you optimize for efficiency by removing friction, you take all the slack/damping out of the system and become instantly more liable to catastrophic f…
I think this is probably better characterized as "efficiency erodes resilience". You can have stability if there are no perturbations. However, if there are, and you have optimized for a regime where there are not, you are very exposed to risk. This is pretty much Table's notion of antifragility as well as the study of resilience engineering.
Efficiency is dangerous and slowing down makes life better
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Re: Efficiency is dangerous and slowing down makes life better
#32[Y]ou would never say of him that he "broke out a sweat": but everything was allotted its own time and thought, as by a man of leisure - his way was unhurried, organized, vigorous, consistent in all.
I feel like I spend a lot of time rushing from one thing to the next, constantly questioning whether I'm spending time wisely. And then I end up accomplishing less because I lack focus in one area. I've instead been trying to relax, slow down, and take tasks one at a time until completion. I'd also recommend Cal Newport's book, Deep Work, on this.
Re: Efficiency is dangerous and slowing down makes life better
#33Earlier quoted context omitted.
The two are certainly related but it feels like optimization is a bit different. Maybe the efficiency equivalent for personal finance would be an example like keeping your bank balance at a minimum and immediately transferring any spare cash to paying down a mortgage or otherwise into a fairly illiquid investment because thet's where the best returns are. But now if you have an unexpected expense you have to scramble…
Ah yes, I think that makes it more clear. In this case, efficiency might be automating bill payments, but then you don't catch price changes, and depending on your other systems in place, you might miss overdrawing your account.
Re: Efficiency is dangerous and slowing down makes life better
#34I've found "efficiency as the opposite of stability" a very powerful concept to think about - even though it's fairly simple, it seems to be almost a fundamental law. Whether it's about the economy at large, your own household, a supply chain, what have you - as soon as you optimize for efficiency by removing friction, you take all the slack/damping out of the system and become instantly more liable to catastrophic f…
In the list of anti-perfection patterns there's mechanical jitter.. a catastrophe avoiding relaxation.
Re: Efficiency is dangerous and slowing down makes life better
#35Insurance is the opposite of a lottery. If you think buying lottery tickets are a waste of money because you lose out in the long run, the same argument should lead you to think having insurance is a good thing.
Re: Efficiency is dangerous and slowing down makes life better
#36I've found "efficiency as the opposite of stability" a very powerful concept to think about - even though it's fairly simple, it seems to be almost a fundamental law. Whether it's about the economy at large, your own household, a supply chain, what have you - as soon as you optimize for efficiency by removing friction, you take all the slack/damping out of the system and become instantly more liable to catastrophic f…
Re: Efficiency is dangerous and slowing down makes life better
#37One of my favorite quotes on this topic comes from Aurelius' description of his adopted father in Meditations . [Y]ou would never say of him that he "broke out a sweat": but everything was allotted its own time and thought, as by a man of leisure - his way was unhurried, organized, vigorous, consistent in all . I feel like I spend a lot of time rushing from one thing to the next, constantly questioning whether I'm sp…
Re: Efficiency is dangerous and slowing down makes life better
#38Insurance is the opposite of a lottery. If you think buying lottery tickets are a waste of money because you lose out in the long run, the same argument should lead you to think having insurance is a good thing.
If you have extraordinary "good luck", you may come out ahead in the lottery. And if you have extraordinary "bad luck" you may come out ahead in insurance.
Insurance of course has a more practical value, and a much better return on investment (even if it averages negative returns)
Re: Efficiency is dangerous and slowing down makes life better
#39Insurance is the opposite of a lottery. If you think buying lottery tickets are a waste of money because you lose out in the long run, the same argument should lead you to think having insurance is a good thing.
Re: Efficiency is dangerous and slowing down makes life better
#40I've found "efficiency as the opposite of stability" a very powerful concept to think about - even though it's fairly simple, it seems to be almost a fundamental law. Whether it's about the economy at large, your own household, a supply chain, what have you - as soon as you optimize for efficiency by removing friction, you take all the slack/damping out of the system and become instantly more liable to catastrophic f…
When I think about personal finance, I often think about efficiency. The obvious examples include buying in bulk, avoiding finance charges to optimize what you get for your money, paying insurance up front when the payment options charge extra, and just plain having fewer subscriptions to keep monthly expenses lower and easier to track. All of this efficiency increases financial stability. I suppose if we argue that…
On the other hand, if you only buy your food day to day, that is certainly more like JIT logistics, prevents waste & storage space needs, etc., but it screws you if you can't leave your house and the stores get closed due to some... ahem... what might possibly happen that forces you to stay inside.
So it's always a matter of your frame of reference, I guess.