Society, Governmental Regulation, and Silly Putty
Like many libertarian leaning people, I have a distinct lack of regard for governmental regulation. I find that I have a difficult time expressing the reasons for some of this to people who don't share the view, but I recently developed a model that describes it. Using silly putty. I use silly putty because 1) It describes the effect in a visualizable way, and 2) I think it's funny.
For those unfamiliar with silly putty, it has some odd characteristics. Given an applied force (like gravity) it will flow to conform to a container. Strike it suddenly, and it will bounce or even break. This is important, as we shall see. (can you imagine me as a professor?) For the purposes of this post, I will use the putty as a model for society, with government represented by actions applied to the putty. I divide the actions into three types.
First up is forces. Forces act by pulling or pushing society in various directions. These are the most basic effects on society and act in a very broad fashion. The desire for stuff, need for security, and political ideology are examples of forces. The need for politicians to do what it takes to get elected would be another. Governmental examples would be criminal law enforcement and broadly designed tax incentives. Forces act in ways that have effects that are usually fairly predictable in a large sense, but less so in the details. When measured by statistics, forces tend to create a 'bell curve' shape if they are balanced by another force, or a 'hockey stick' if they are not. In the silly putty model, forces control where the putty tries to flow towards.
Next up are limits. Limits are properties of the system that keep it within artificial bounds. This would be things like Social Security, Welfare, and minimum wage. I cannot think of any that are not governmental, but that does not mean they do not exist. Limits also act in ways that tend to be pretty predictable, but not always the ones desired. When measured by statistics, limits tend to express as a 'pooling' effect at the limit. (See chart 3 on this report that Luis showed me... this is what got me started on this analogy). In the silly putty model, limits are the container that bounds some areas.
Lastly are focused forces. Focused forces are specific interactions aimed at narrowly target goals. Note that they can push or pull. These would be things like regulations against specific chemicals, incentives towards specific technologies, and demographically targeted laws. The only thing predictable about the results is their unintended consequences. When measured by statistics focused forces tend to express as a temporary 'spike' or 'divot'. In the silly putty model, this is analogous to pushing against the putty with a pencil, or pulling with a hook.
My personal notion is that forces are the best way to manipulate a system, followed by limits. Focused forces have a brief effect, but the inevitably fluid nature of any complex system will always cause it to flow around the obstruction, often with results worse than what the action was trying to fix. Limits are a middle option, to be used when necessary. Broad forces are the least attractive to many policy makers because of the lack of easily predicted point results, but in terms of making real and lasting changes are by far the most effective.