Source: Ludwig von Mises Institute
by Thiago VS Coelho
“Civilization does not usually fail because every participant is stupid, vicious, or indifferent. It fails because people are placed inside systems where the locally-prudent action sustains a globally-absurd result. ‘Moloch’ is Eliezer Yudkowsky’s name for these impersonal traps: arrangements in which nearly everyone would prefer a better world, but no individual can safely move there alone. The broad failures fall into three recurring types. First, the decisionmaker is not the beneficiary. A regulator, hospital administrator, licensing board, journal editor, or politician makes a rule whose costs are borne mainly by others. Second, there is asymmetric information. Someone knows the relevant fact, but cannot credibly transmit it through the institutional fog. Third, society is stuck in an inferior equilibrium: everyone responds rationally to the incentives in front of him, while the system as a whole remains inferior to another possible arrangement.” (06/15/26)