Alignment of Incentives

Capitalism is Moloch. But democracy is also Moloch. Both are intense competitions. Both are going to be won by people trying to win the competition, not people trying to be nice and do the right thing. In both, we expect that winning the competition will have something to do with being good – capitalists win partly by making good products, candidates win partly by making good policy. But both systems have equally deep misalignments that can’t be eliminated just by filling them with nice people.

Source: Contra Robinson On Public Food | Slate Star Codex, by Scott Alexander


RE: Moloch in Howl, by Allan Ginsberg

Moloch is introduced as the answer to a question – C. S. Lewis’ question in Hierarchy Of Philosophers – what does it? Earth could be fair, and all men glad and wise. Instead we have prisons, smokestacks, asylums. What sphinx of cement and aluminum breaks open their skulls and eats up their imagination?

And Ginsberg answers: Moloch does it.

There’s a passage in the Principia Discordia where Malaclypse complains to the Goddess about the evils of human society. “Everyone is hurting each other, the planet is rampant with injustices, whole societies plunder groups of their own people, mothers imprison sons, children perish while brothers war.”

The Goddess answers: “What is the matter with that, if it’s what you want to do?”

Malaclypse: “But nobody wants it! Everybody hates it!”

Goddess: “Oh. Well, then stop.”

Source: Meditations On Moloch | Slate Star Codex, by Scott Alexander

 

Capitalism is an agent more powerful and creative than any individual human, programmed with the imperative: “Give people with money what they want.” And Nathan correctly points out some ways this can go wrong:

1. Companies can just lie to consumers about the product they’re providing. They can say their drinks are healthy, then fill them with sugar. In fact, since this allows them to create products more desirable than any honest product could be, of course they will do this.

2. Companies can appeal to consumers by satisfying empty addictive desires that their best selves wouldn’t endorse them having, like for sugar-laden drinks. Worse, it can use advertising to encourage such desires on a society-wide level, since this will make its job easier.

3. Although it will claim to be socially responsible in order to attract consumers, in reality it only cares about people proportional to how much money they have. It will care about poor people a little, because even poor people have a little money, but it will be much more attuned to the needs of the rich – which is why pharma companies invest more into curing baldness than curing malaria.

But government is the same kind of misaligned system. It’s an agent more powerful and creative than any individual human, programmed with the imperative: “Give people with [votes] what they want,” where [votes] is a proxy for real votes or any other kind of power or king-making ability – campaign-contributing-ability, lobbyists, thought-leader-status. And so:

1. Candidates can just lie to voters about anything from their personalities to the effects of their policies. Somebody can say their plan will cut taxes on everybody while slashing the deficit, and people will believe them. In fact, since this allows a candidate to propose policies more popular than any real policy could be, of course they will do this.

2. Candidates, parties, and governments can appeal to voters by satisfying empty addictive desires that their best selves wouldn’t endorse us having. Worse, it can use the media to encourage such wants on a society-wide level. How much of the news cycle is devoted to real discussion of what will improve the country, versus clickbait, outragebait, identity politics, and the latest in who’s collaborating with Russia? This isn’t a coincidence – politicians find it useful to encourage these discussions, because it’s easier to win and keep voters with identity politics issues than it is by being competent, cf. Decision 2016.

3. Although it will claim to be civic-minded and altruistic in order to win voters and maintain the consent of the governed, in reality the government only cares about people proportional to how much power they have. It will care about ordinary people a little, because even ordinary people have a vote. But it will be much more attuned to the powerful – which is why we get tax breaks for billionaires more often than medical care for the poor.

Capitalism is Moloch. But democracy is also Moloch. Both are intense competitions. Both are going to be won by people trying to win the competition, not people trying to be nice and do the right thing. In both, we expect that winning the competition will have something to do with being good – capitalists win partly by making good products, candidates win partly by making good policy. But both systems have equally deep misalignments that can’t be eliminated just by filling them with nice people.

Source: Contra Robinson On Public Food | Slate Star Codex, by Scott Alexander