It's amazing how different economics looks when you assume the goal is to have an EFFECTIVE system rather than an EFFICIENT system.

An efficient system uses resources maximally, thus resources are never left lying around, but needs must be waiting for resources to become available.

An effective system resolves needs maximally, doing its best to ensure no needs are left unfulfilled. This requires that resources must be kept idle for unexpected needs.

In practice, effective systems are often more long-term efficient because emergency needs are often particularly expensive.

@adredish That reminds me of the Efficiency Paradox idea in ecology, where ecosystems filled with less efficient species (high metabolism, high waste, and I suspect more effective in analogy to your economics system) are themselves more efficient (in this case at recycling organic materials).

Perhaps it’s like a human society being more efficient when filled with more effective institutions.

https://doi.org/10.1073/pnas.1901785116

#ecology

@adredish what a profoundly valuable point to spell out so nicely.

one thousand gratitude credits have been added to your legacy.

@adredish Indeed for ex. the siren song of “efficiency” draws in a lot of smart people who think too technocratically. Like how Calif. is about to hand control of its electrical grid over to an “inter-state compact” involving private industrial owners… in the middle of fascist national political & economic power consolidation.
There's another, more comprehensive efficient system as well, one which considers externalities (a request blocked due to lack of resources). It's still different to an effective system because this efficiency dictates rapid flow, not correct flow. An effective system "looks ahead" to reduce future needs.
@adredish