Tuesday, September 25, 2012

Idiotic when viewed from any other perspectives

It is delightful that Megan McArdle is back writing after a fallow period as she transitioned from The Atlantic to Newsweek. I have missed her clear writing, rational thinking, and common sense. She is much like Thomas Sowell in that respect. From Philadelphia Wants its Eyesore Back by Megan McArdle.
It also harkens back to an old policy problem: excessively rule-bound government frequently does stuff that makes perfect sense within the rules, but is also perfectly idiotic when viewed from any other perspectives. The more we expand liability, and the tighter we wind the red tape, the more foolish outcomes like this we will see.
Every system has a tendency to accumulate unproductive elements over time. So long as there is not much external change or any external shocks, things may approach the level of unsustainability but don't usually crash over.

Government systems tend to be especially prone to this simply because it is usually shielded from agency, consequences, and to some degree resource constraints. But it is true in the competitive sector as well. Innumerable times in my consulting career I have asked why something was done a particular way (a way which seemed inefficient or ineffective) and gotten an answer along the lines of - It's always been done that way; Mr. Smith (who retired 25 years ago) set it up that way; It seemed too much trouble to change, etc. We get accustomed to the status quo and set great store on its preservation rather than figuring out how to improve it. Much success depends on fixing something and then leaving well enough alone. Except when the whole system becomes marred by just-good-enough. By the time you notice, it is often nearly too late.

Courage and fresh perspecitves are critical to every system.

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