Incentive Structures

Even a cursory study of system dynamics and economics helps you become better at analyzing situations via incentive structures. 

Few politicians can get re-elected after saying “I was wrong about X.”  Saying “I was wrong” is hard for any of us.  Therefore, we should not be surprised that politicians have excuses, lie about their previous position, or try the artful “I’ve evolved.”

It’s easy for legislators to yammer about simplifying regulations and tax codes.  Significantly changing it?  The power to implement regulations and tax codes is their primary power tool.   Sincere individuals also find out that the power of the larger system with many participants benefitting from the status quo is much larger than the individual trying to change it.

Where else can you spot incentive structures?

Our species is addicted to comfort. Change is difficult.  Progress always requires going through discomfort. 

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