The Hierarchy of the MachineSubmitted by Calgary4Paul on Sat, 01/12/2013 - 17:44
"A hierarchy is a mechanism by which an actor at one rung of authority is able to shift cost and effort downward, while appropriating the benefits from others’ efforts. In a hierarchy, the authority of those above is substituted for the experience-based judgment of those in direct contact with a situation. The judgment of the person best qualified to do a job is always subject to interference from someone with less knowledge, whose primary interest is in living off the surplus effort of those below.
When authority-based rules are allowed to interfere with the experience-based judgement of those actually in a situation, the result can only be a net reduction in efficiency and rationality. So the question is, how does such a suboptimal state of affairs continue?
The answer, to put it bluntly, is that it makes us easier to milk. The self-interest of those in authority lies not in optimizing the efficiency of the system as a whole, but in maximizing their own extraction of rents from it. Their interest is in maximizing the absolute size of their slice of the pie, even if doing so results in a smaller pie overall."