(Thanks, D. :)

Reader D. sends us:

=====

What Happens When Complexity Unravels?
by Charles Hugh Smith

Those glancing at the appearances will be assured all is well and it will all sort itself out. Those who look behind the screen will move away as fast as they can

When finances tighten, there are two choices: cut expenses or increase revenues. Monopolies, cartels
and governments can increase revenues by increasing taxes or the price of goods and services because users /
customers / taxpayers have no alternative. The rest of us have to cut expenses.

Making lasting cuts in expenses generally requires reducing sources of expense, and within institutions
and enterprises, complexity is one systemic source of expense. But reducing complexity is difficult, so it's rarely
pursued unless the only remaining choice is bankruptcy / collapse.




The problem is there are many constituencies defending complexity and none favoring slash-and-burn reductions of
complexity.
As a result, complexity is defended and the core functions of the institution are sacrificed instead.




I've posted the charts below reflecting the extraordinary expansion of administrators in higher education and healthcare
in the context of the Ratchet Effect and bureaucratic bloat.




The Ratchet Effect is: costs and complexity only increase, they never decrease because organizations are optimized
to expand, not shrink, and so there are no institutionalized pathways to reducing complexity and costs.




Everybody clamors for a larger budget and another assistant. Nobody clamors for a radically reduced budget and staff.




This raises a question few seem to ask: what happens when complexity unravels?




Why will complexity unravel? The answer is simple: it costs too much, and supply-side and labor costs are rising.
Something's gotta give, and that something will be complexity.

Continues:

http://charleshughsmith.blogspot.com/2022/05/what-happens-when-complexity-unravels.html

**********************************************************************************