Kilroy Was Here
June 09, 2004
The Markets,Governments, and Local Optima
One problem with natural selection is local optima. That is, nautural selection is all about small improvements, and one can think about small improvements as a rule where the next step must always be better than the previous one. Unfortunately, if one starts out climbing a small hill, one can never go down into the valley to get to the large mountain.
The markets have similar problems, without a large inflow of capital, a market-driven entity cannot easily move from more profitable processes and products to less profitable ones without being hurt by more short-termed minded competition.
This could be where the role of government helps out. Many programs that the government has started has avoided this type of problem, such as the GI Bill, etc. Government should provide some resources to help us escape from local optima.
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