Thus spake peggy miller circa 10/17/2008 09:32 AM: > Translation -- statistics and common sense verified that the larger the > operation becomes, with noticeably poorer decisions happening at the size of > business over $1 billion in profits, matched by replacement of > ownership/manager with non-owner managers, judgment fails. Caring appears to > be a part of ownership. Somethings counter this problem, like profit sharing > -- giving workers part of profits -- but ownership of business and smaller > size seems to be almost irreplaceable. Small banks and credit unions, owned > locally, rarely fail. The owner's name, reputation and thus decisions are on > the line.
Why is it that we are (and continue to be) so myopic to the flaws to such large-scale abstraction (aggregation and accumulation)? It seems (to me) that we should have learned this lesson thoroughly when we demonstrated that many contexts call for distributed as opposed to centralized solutions. We had to learn that lesson over and over in various disciplines. Why hasn't that knowledge translated to corporate governance? (Or government even?) Centralization, abstraction, aggregation, and accumulation seem to be the dominant tendency. My undefended conjecture is that such abstraction is the only way an individual can _both_ multiply their money _and_ keep the consequences at arm's length. I.e. it's the only way one can both make butt-loads of money and retain a clear conscience. (Gee, do I sound like a socialist? or what? ;-) But it's also quite possible that the only way to maintain a "survival by growth" method is to engage in such accumulation. For corporations, it's obvious. For the federal government, it's less so because it's reasonable to assume that the management of 3.5 million square miles and 350 million people requires a centralized solution. > How many names of the managers of these large failed institutions do we > know? a couple? and they get paid handsomely either way .. This reminds me of: Thus spake peter circa 10/01/2008 09:50 AM: > Sure I will dig out some names ... > [...] > > glen e. p. ropella wrote: >> But can you help me reduce my ignorance? Which "complexity science >> geniuses" created these credit models? And which ones do you think >> might go to jail? Peter? Did you ever get a chance to dig up some names of these "complexity science geniuses"? -- glen e. p. ropella, 971-219-3846, http://tempusdictum.com ============================================================ FRIAM Applied Complexity Group listserv Meets Fridays 9a-11:30 at cafe at St. John's College lectures, archives, unsubscribe, maps at http://www.friam.org