Re:Life is fractal, but markets are square
by bobthepanda on Wednesday June 26, 2019 @10:54AM
(#20285554)
Intentionally planning for emergence is sort of a lost art these days. The most famous example is the Manhattan grid, where at its conception there were no zoning limits and it was lines on a map with no infrastructure built, it just kind of filled in by itself and constantly changed over the years (Midtown, for example, was originally a low-slung wealthy neighborhood for people escaping the crowded downtown area)
Part of the “problem” is that we demand so much in modern services which need to be placed ahead of time; this is not the 1800s where you could hoist up a tenement with no plumbing and electricity, no fire, police, hospital or schools to be seen.
Re:Life is fractal, but markets are square
by Synaesthesia on Wednesday June 26, 2019 @12:29PM
(#20286502)
There’s plenty of centralized planning in markets. Corporations are planning all the time.
Suburbs though, and built environments generally are an example of how "markets" are the extremely different from eachother depending on what they're made of.
Suburbs are generally an example (imo) of markets grafting on economic branches (the houses, mostly) onto a (mostly) centrally planned trunk, roads, infrastructures, schools, parks, etc. Suburbs take a lot of infrastructure, and at least historically it's had been a push mechanism. Planners plan/build the services required to create demand for housing rather than pre-existing residents creating demand for services.
Big city real estate markets are very often characterized by (a) land scarcity making them attractive long term investment markets and (b) a basically stationary supply side. Supply reacts so slowly/weakly to price changes that the only thing way to equilibrium is prices... usually upward. The price of housing becomes the maximum people can pay, often the maximum a bank is willing to loan.
This is completely different to the market for services, the market for manufactured goods and such.
We do a lot of planning, whether deliberately or not. Even under the most ardent anti-matket systems (eg Maoist China in the 50s-60s) we do a lot of "market." It's basically unavoidable.
However, we are absolutely terrible at intentionally planning for emergence. Creating the planned infrastructure onto which unplanned emergence can occur. We don't even have the right terms to discuss it.
Whether we like that ideologically/politically or not, or whether we're good at it... it's a big part of how society and economy evolve.
The fairly arbitrary and made up^ corporate laws, IP laws and such are a very good example. Change them and we totally change the shape of the economy. They weren't planned though, they're designed by historical arbitrariness.
Philosophically, imo, a whole lot boils down to our inability to grapple with "not sure." Hard science can. We don't know if string theory is true. This is one of the great cultural achievements of science because it isn't part of human nature.
^In the sense that if we re-ran history, we'd expect totally different outcomes.