Earlier quoted context omitted.
I feel that a 100% efficient system is not resilient. Even minor disruptions in subsystems lead to major breakdowns. There’s no room to absorb shocks. We saw a drastic version of this during COVID-19 induced supply chain collapse. Car manufacturers had built near 100% just in time manufacturing that they couldn’t absorb chip shortages and it took them years to get back up. It also leaves no room for experimentation.…
This is coincides with my headcannon cause of the business cycle. 1. Firms compete 2. Firms either increase their efficiency or die 3. Efficient firms are more susceptible to shocks 4. Firm shutdown and closures are themselves shocks 5. Eventually the system reaches a critical point where the aggregate susceptibility is higher than the aggregate of shocks that will be generated by shutdowns and closures 6. Any extern…
Something you personally (in your head) believe to be a general law, or rule, or truth (canon). It's roughly synonymous with "mental model".
A cannon is a weapon.