Global / local


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I don’t trust [Steven Pinker’s] optimism […] more and more kinetic energy, like war, has been turned into potential energy, like unused nuclear weapons - [but] if you don’t have a potential energy term, then everything’s just getting better and better.

[Eric Weinstein]


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The tide is out, and globalism is exposed. In its place, watch for the rise of localism.

This won’t be some Jeffersonian agrarian world where we’re all threshing our own wheat, but a complex, locally–adapted system that is vibrant and resilient because it’s interconnected but not centrally controlled. 

Our current supply chain and financial system evolved by using standardization to create efficiencies. Finding “synergies” led to geometric growth of certain companies, lowering nominal costs for customers and concentrating decision-making among few. For example, four companies are now responsible for 70% of the pork production in the U.S.

The sticker price might appear lower at the grocery store, but hidden costs exist.

Think of it this way: A $4 Mr. C’s hotdog sounds like a deal, but it comes with the low-probability kicker that if a virus/terrorist/cyber-attack occurs, we might be sheltering in place for an extended period of time and our economy could go down the toilet along with millions of jobs. Now consider a locally–sourced hotdog that costs $5, $6, or even $15. Localism would likely result in higher nominal cost, but if localized decision-making, supply chains and finance prevented being shut-in at home, hoping centralized governments and corporations can avoid being overwhelmed, what is that worth?

Some things are better managed at scale, just not ALL things. By pushing most decision-making to the locally-dispersed, what Nassim Nicholas Taleb calls “fractal localism”, we can maximize customization, adaptation, and responsiveness while still keeping those systems and institutions that are most effective across locales.

[Eric Weatherholtz]
'Localism: Retail’s Coronavirus Hangover Cure'


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Things appeared to be getting better and better but our prosperity was built on credit. The things we gained came at the price of an increasingly fragile system, caused by ever-increasing imbalances.


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