cross-posted from: https://lemmy.ml/post/103229

We have, in Western society, managed to simultaneously botch the dreams of democracy, capitalism, social coherence, and techno-utopianism, all at once. It’s embarrassing actually. I am embarrassed. You should be embarrassed.

The truth is, functioning markets are not “free” at all. They are regulated. Unregulated markets rapidly devolve into monopolies, oligopolies, monopsonies, and, if things get really bad, libertarianism.

The job of market regulation - fundamentally a restriction on your freedom - is to prevent all that bad stuff. Markets work well as long as they’re in, as we call it in engineering, the “continuous control region,” that is, the part far away from any weird outliers. You need no participant in the market to have too much power. You need downside protection (bankruptcy, social safety net, insurance). You need fair enforcement of contracts (which is different from literal enforcement of contracts).

The major rework we need isn’t some math theory, some kind of Paxos for Capitalism, or Paxos for Government. The sad, boring fact is that no fundamental advances in math or computer science are needed to solve these problems.