Pluralistic: Inefficiency is bad, actually (11 Sep 2026)


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Inefficiency is bad, actually (permalink)

The most reliable way to lose a political battle is to let your adversary define the terms. For example, if you're an artist and you let your boss define the fight over AI, he'll make it all about "IP" (not labor) and ask you to help secure a victory that will make him richer and you poorer:

https://pluralistic.net/2026/09/02/scrape-scrope-scrap/

If we want to win these important battles, we can't let our adversaries define them. That's the blunder we made 50 years ago, when we let the neoclassical economists redefine the problem of monopolies. Before the Carter era, the monopoly fight was about power. Monopolies had to be fought because wealth concentration would create "autocrats of trade," so powerful as to be beyond the reach of any regulator, any union, any competitor. Even if a company achieved its monopoly by being the best in the world – by making the best products at the best prices while paying the best wages – its power still needed blunting, lest it change its mind and start charging more, reducing quality, and paying less:

https://pluralistic.net/2022/02/20/we-should-not-endure-a-king/

The Chicago School economists who were catapulted to dominance by Reagan, Thatcher, et al won this debate by changing the frame. They insisted (as neoclassicals love to do) that economics is no mere social science, obsessed with squishy, qualitative matters like "power." Rather, economics was a natural science, like physics, in which everything important could be crystallized (which is to say, reduced) to an equation:

https://en.wikipedia.org/wiki/Nobel_Memorial_Prize_in_Economic_Sciences#Creation_and_funding

Economists call these equations "models," and they are famously impenetrable…unless you've had extensive training in economics. Once everything important about the economy was captured by abstruse equations, ordinary people's "feelings" about being squeezed, coerced, corralled or cheated were no longer germane:

https://pluralistic.net/2022/05/09/rest-in-piss-robert-bork/#harmful-dominance

Thus, competition enforcement was transformed: no longer was it an inquiry into the power that a company wielded or might amass through a merger. Rather, every competition question was a matter of solving an equation that would tell you whether the result would be "efficient":

https://pluralistic.net/2021/06/03/jitters/#brittleness

This framing was tactically brilliant. Once an economist pronounces a merger to be "efficient," everyone who opposes that merger can be dismissed as campaigning for an inefficient world. Who wants to live in an inefficient world?

But "efficiency" isn't a freestanding concept. A Martian observing the Earth through a powerful telescope could not tell you when a long line at the grocery store was "efficient" (because the wages saved by understaffing exceeded the lost business from customers who noped out and abandoned their shopping cart) and when it was "inefficient" (because the mom whose wait made her miss administering her kid's insulin ended up spending thousands on an emergency room visit).

In practice, an economist's "efficiency" is indistinguishable from "brittleness" and often crosses over into "cheating." The most "efficient" companies in the world have made an art out of locking in their customers, making it so hard to switch to a rival that customers tolerate declining quality, service and affordability:

https://pluralistic.net/2026/09/06/hotels-california/#the-eagles-were-optimists

During the pandemic, the "efficiency" of long supply-chains, low inventory, and bare-bones staffing was revealed as a form of societal immunocompromise, the annihilation of everything we need to survive when the status quo collapses, so that disaster always becomes calamity:

https://pluralistic.net/2022/06/01/factories-to-condos-pipeline/#stuff-not-money

Speaking this week on the Capitalisn't podcast, the heterodox economist Mariana Mazzucato unpacks her new book The Common Good Economy, and how its thesis reframes "efficiency" as a productivity question:

https://capitalisnt.com/episodes/can-capitalism-serve-the-common-good-ft-mariana-mazzucato-EODamLKT

Mazzucato describes how the economic fetish for efficiency and growth lacks specificity. Organizing a society around "growth" leads to a financialized economy, in which firms post growth by selling off the things they need to survive:

https://pluralistic.net/2024/05/23/spineless/#invertebrates

It leads to an enshittification economy, where firms "grow" by making their products worse, as when Google adds five more ads to every Youtube video and makes search worse so you'll have to keep refining your queries, loading fresh ads every time:

https://pluralistic.net/2024/04/24/naming-names/#prabhakar-raghavan

As with "efficiency," there's nothing wrong with "growth" (indeed, "de-growth" is a terrible slogan and a giant self-own for the climate movement). To smash gouging landlords, we need to grow the supply of housing stock, but if we flatten this to mean "number (of new condos) go up," we'll end up with a city full of half-built buy-to-rent condos that no one wants to pay for, much less live in:

https://www.mpamag.com/ca/mortgage-industry/market-updates/toronto-condo-buyers-abandon-units-worth-less-than-they-paid/524217

We need "growth" of batteries, solar panels, sea-walls, heat-pumps, insulation and recycling plants. We need "growth" of controlled burns, medical services, and gender-affirming care. We need "growth" of federated social media and non-American alternatives to productivity software.

This is where framing the debate is so important. We have to take back terms like "productivity," so it means "making things that we need more of," not "making more things." Governments can use taxation, procurement and regulation to coerce, convince, or woo private firms into producing these things – and governments can produce them directly.

The biggest barrier to a productive, resilient economy is corporate power. Smashing their power and building our own has to be our alpha and omega. We can't afford to spend our time arguing about whether a monopolist is "efficient." Efficiency does not render concentrated wealth and power safe for human civilization.

Once we reclaim productivity as "more of the things we want," we'll make it clear that replacing civil servants with AI chatbots is a loser policy. Mark Carney wants to fire tens of thousands of Canadian civil servants and replace them with defective LLMs on the grounds that these will cost less:

https://www.pm.gc.ca/en/news/news-releases/2026/06/04/prime-minister-carney-launches-ai-all-canadas-new-national-artificial

But they will deliver less, too. The only thing public sector chatbots truly deliver is cynicism about the ability of the state to achieve anything:

https://pluralistic.net/2026/02/06/doge-ball/#n-600

After generations in which the private sector has been allowed to degrade into an extractive, hostage-taking, enshittifying, planet-torching existential risk, we need the public to believe that states can deliver excellence. What's more, any politician who oversees the delivery of excellence will be beloved by the public, who will reward that politician by backing the kind of wildly ambitious program we desperately need:

https://pluralistic.net/2026/02/24/mamdani-thought/#public-excellence

As Mark Carney so eloquently said at Davos, as frightening as it is to have Trump "rupture" the old order, we should all be able to agree that the old order sucked and seize this opportunity to build something new and better:

https://www.weforum.org/stories/forum-institutional/davos-2026-special-address-by-mark-carney-prime-minister-of-canada/

I believe in Carneyism with all my heart – I just wish Carney did:

https://pluralistic.net/2026/05/30/rupture/#deeds-not-words

For all Carney's talk of a rupture and a better new world, his two signature strategies (besides replacing the civil service with chatbots) are retaliatory tariffs and importing Chinese EVs. Neither of these addresses Canada's resiliency and productivity deficits. If the retaliatory tariffs work, Canada goes back to getting its cars from America. If the China deal works, Canada swaps its USA risk for a China risk.

If Carney was actually interested in Carneyism, he'd use retaliatory tariffs and Chinese EVs to buy time while committing massive investment for building Canada's industrial capacity to manufacture the things that give other countries dangerous leverage. The problem with the old order was that it created a brittle system where one maniac elevated to a position of power could shatter everyone's peace and prosperity. The answer to that is not "a different maniac." It's also not two maniacs.

To be truly productive and efficient, Canada needs a competent, well-resourced civil service, not chatbots. It needs the capacity to build things that it can't afford to do without. Carney's failure to embrace Carneyism while insisting that he is delivering efficiency and growth is as clear an example of the risks of letting your enemies set the terms of the debate as you could ask for.

(Image: Martell, CC BY-SA 3.0; Horacio Cambeiro, CC BY-SA 4.0; modified)


Hey look at this (permalink)



A shelf of leatherbound history books with a gilt-stamped series title, 'The World's Famous Events.'

Object permanence (permalink)

#25yrsago Tell Canada to Reject Anti-Technology Bans https://web.archive.org/web/20010917020803/https://www.eff.org/alerts/20010907_eff_canada_cpdci_alert.html

#25yrsago Making Light on 9/11 https://web.archive.org/web/20010917012109/http://www.panix.com/~pnh/makinglight.html

#25yrsago Twin Towers survivor registry https://web.archive.org/web/20010914220549/https://www.shunn.net/okay/

#25yrsago Blame encryption for 9/11 https://web.archive.org/web/20010917024851/http://www.usatoday.com/life/cyber/tech/2001-02-05-binladen.htm

#20yrsago Lawbot: open expert system for legal “advice” https://web.archive.org/web/20061103200129/https://www.lawunderground.org/PortalCSVS/DesktopDefault.aspx

#20yrsago USPTO encloses 10MB of porn with trademark rejection https://web.archive.org/web/20061005074505/https://www.thesmokinggun.com/archive/0911061uspto1.html

#20yrsago German Pirate Party founded https://web.archive.org/web/20061011142613/http://www.piratenpartei-deutschland.de/index.php?id=50

#20yrsago Starbucks co-produces movie, then sells DVD https://web.archive.org/web/20060322021155/http://www.post-gazette.com/pg/06013/637176.stm

#20yrsago How Hollywood’s MP in Canada financed her campaign https://web.archive.org/web/20061010121752/https://www.michaelgeist.ca/content/view/1428/125/

#20yrsago Jimmy Wales to Beijing: Wikipedia won’t censor https://web.archive.org/web/20061004173945/http://observer.guardian.co.uk/world/story/0,,1869074,00.html

#20yrsago Chumby chairman interview: squeezable, open bean-bag computer https://wifinetnews.com/archives/2006/09/podcast_21_chumbys_chairman_steve_tomlin.html

#15yrsago Judge: copyright troll showed “staggering chutzpah” in sending its own subpoenas to ISPs https://www.eff.org/deeplinks/2011/09/judge-sanctions-copyright-troll-attorney

#10yrsago Why Facebook’s “It’s too hard” excuse for Vietnam war photo takedown is bullshit https://web.archive.org/web/20160914214543/http://tinyletter.com/danhon/letters/s3e27-it-s-difficult

#10yrsago A socialist wrote the Pledge of Allegiance, which used to be accompanied by Nazi salutes https://www.smithsonianmag.com/smart-news/rules-about-how-to-address-us-flag-came-about-because-no-one-wanted-to-look-like-a-nazi-180960100/?no-ist

#1yrago Hate the player AND the game https://pluralistic.net/2025/09/10/say-their-names/#object-permanence

#1yrago Reverse centaurs are the answer to the AI paradox https://pluralistic.net/2025/09/11/vulgar-thatcherism/#there-is-an-alternative


Upcoming appearances (permalink)

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Recent appearances (permalink)



A grid of my books with Will Stahle covers..

Latest books (permalink)



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Upcoming books (permalink)

  • "The Post-American Internet," a geopolitical sequel of sorts to Enshittification, Farrar, Straus and Giroux, 2027

  • "Unauthorized Bread": a middle-grades graphic novel adapted from my novella about refugees, toasters and DRM, FirstSecond, April 20, 2027

  • "Enshittification, Why Everything Suddenly Got Worse and What to Do About It" (the graphic novel), Firstsecond, 2027

  • "The Memex Method," Farrar, Straus, Giroux, 2027



Colophon (permalink)

Today's top sources:

Currently writing:

  • “Once Is Enemy Action,” a science fiction novel about the origins of modern technofascism. Today's words: 507 (14417 total).

  • "The Post-American Internet," a sequel to "Enshittification," about the better world the rest of us get to have now that Trump has torched America. Fourth draft completed. Submitted to editor.

  • A Little Brother short story about DIY insulin PLANNING


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