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838 points turrini | 9 comments | | HN request time: 0.001s | source | bottom
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caseyy ◴[] No.43972418[source]
There is an argument to be made that the market buys bug-filled, inefficient software about as well as it buys pristine software. And one of them is the cheapest software you could make.

It's similar to the "Market for Lemons" story. In short, the market sells as if all goods were high-quality but underhandedly reduces the quality to reduce marginal costs. The buyer cannot differentiate between high and low-quality goods before buying, so the demand for high and low-quality goods is artificially even. The cause is asymmetric information.

This is already true and will become increasingly more true for AI. The user cannot differentiate between sophisticated machine learning applications and a washing machine spin cycle calling itself AI. The AI label itself commands a price premium. The user overpays significantly for a washing machine[0].

It's fundamentally the same thing when a buyer overpays for crap software, thinking it's designed and written by technologists and experts. But IC1-3s write 99% of software, and the 1 QA guy in 99% of tech companies is the sole measure to improve quality beyond "meets acceptance criteria". Occasionally, a flock of interns will perform an "LGTM" incantation in hopes of improving the software, but even that is rarely done.

[0] https://www.lg.com/uk/lg-experience/inspiration/lg-ai-wash-e...

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dahart ◴[] No.43973432[source]
The dumbest and most obvious of realizations finally dawned on me after trying to build a software startup that was based on quality differentiation. We were sure that a better product would win people over and lead to viral success. It didn’t. Things grew, but so slowly that we ran out of money after a few years before reaching break even.

What I realized is that lower costs, and therefore lower quality, are a competitive advantage in a competitive market. Duh. I’m sure I knew and said that in college and for years before my own startup attempt, but this time I really felt it in my bones. It suddenly made me realize exactly why everything in the market is mediocre, and why high quality things always get worse when they get more popular. Pressure to reduce costs grows with the scale of a product. Duh. People want cheap, so if you sell something people want, someone will make it for less by cutting “costs” (quality). Duh. What companies do is pay the minimum they need in order to stay alive & profitable. I don’t mean it never happens, sometimes people get excited and spend for short bursts, young companies often try to make high quality stuff, but eventually there will be an inevitable slide toward minimal spending.

There’s probably another name for this, it’s not quite the Market for Lemons idea. I don’t think this leads to market collapse, I think it just leads to stable mediocrity everywhere, and that’s what we have.

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xg15 ◴[] No.43978709[source]
This is also the exact reason why all the bright-eyed pieces that some technology would increase worker's productivity and therefore allow more leisure time for the worker (20 hour workweek etc) are either hopelessly naive or pure propaganda.

Increased productivity means that the company has a new option to either reduce costs or increase output at no additional cost, one of which it has to do to stay ahead in the rat-race of competitors. Investing the added productivity into employee leisure time would be in the best case foolish and in the worst case suicidal.

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diputsmonro ◴[] No.43979790[source]
Which is why government regulations that set the boundaries for what companies can and can't get away with (such as but not limited to labor laws) are so important. In absence of guardrails, companies will do anything to get ahead of the competition. And once one company breaks a norm or does something underhanded, all their competitors must do the same thing or they risk ceding a competitive advantage. It becomes a race to the bottom.

Of course we learned this all before a century ago, it's why we have things like the FDA in the first place. But this new generation of techno-libertarians and DOGE folks who grew up in a "move fast and break things" era, who grew up in the cleanest and safest times the world has ever seen, have no understanding or care of the dangers here and are willing to throw it all away because of imagined inefficiencies. Regulations are written in blood, and those that remove them will have new blood on their hands.

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TFYS ◴[] No.43981042[source]
I don't think regulations are enough. They're just a band-aid on the gaping wound that is a capitalist, market based economy. No matter what regulations you make, some companies and individuals become winners and over time will grow rich enough to influence the government and the regulations. We need a better economic system, one that does not have these problems built in.
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rapsey ◴[] No.43981201[source]
Gaping wound that lifted billions out of powerty and produced the greatest standard of living in human history.
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1. TFYS ◴[] No.43981222{4}[source]
Sure, but you can't ignore the negative sides like environmental destruction and wealth and power concentration. Just because we haven't yet invented a system that produces a good standard of living without these negative side effects doesn't mean it can't be done. But we aren't even trying, because the ones benefiting from this system the most, and have the most power, have no incentive to do so.
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2. rapsey ◴[] No.43981372[source]
Those are all results of political corruption, not capitalism. It is the government's job to set the ground rules for the economy.
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3. TFYS ◴[] No.43981691[source]
Political corruption is a consequence of capitalism. Taking over the political system provides a huge competitive advantage, so any entity rich enough to influence it has an incentive to do so in an competition based economy that incentivizes growth.
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4. tm-guimaraes ◴[] No.43981867{3}[source]
When did Political corruption not exist? In what system in history did the people in power have so few rotten apples that corruption was an anomally? Blaming corruption on capitalism is silly. As long has worldhas resources, people want control of reasources, and bad actors will do bad actors thingies.
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5. TFYS ◴[] No.43982028{4}[source]
You're right, political corruption is a problem in other systems as well, not just capitalism. I guess it would be more accurate to say that power concentration causes political corruption. We should try to figure out if it's possible to manage the economy in a way that limits the amount of power any individual can have to such an extent that corruption would be impossible.
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6. dsign ◴[] No.43982195[source]
Capitalism is a good economic engine. Now put that engine in a car without steering wheel nor brakes and feed the engine with the thickest and ever-thickening pipe from the gas tank you can imagine, and you get something like USA.

But most of the world doesn't work like that. Countries like China and Russia have dictators that steer the car. Mexico have gangs and mafia. European countries have parliamentary democracies and "commie journalists" that do their job and reign political and corporate corruption--sometimes over-eagerly--and unions. In many of those places, wealth equals material well-being but not overt political power. In fact, wealth often employs stealth to avoid becoming a target.

USA is not trying to change things because people are numbed down[^1]. Legally speaking, there is nothing preventing that country from having a socialist party win control of the government with popular support and enact sweeping legislation to overcome economic inequality somewhat. Not socialist, but that degree of unthinkable was done by Roosevelt before and with the bare minimum of popular support.

[^1]: And, I'm not saying that's a small problem. It is not, and the capitalism of instant gratification entertainment is entirely responsible for this outcome. But the culprit is not capitalism at large. IMO, the peculiarities of American culture are, to a large extent, a historic accident.

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7. TFYS ◴[] No.43982385[source]
You can't really separate wealth and power, they're pretty much the same thing. The process that is going on in the US is also happening in Europe, just at a slower pace. Media is consolidating in the hands of the wealthy, unions are being attacked and are slowly losing their power, etc. You can temporarily reverse the process by having someone steer the car into some other direction for a while, but wealth/power concentration is an unavoidable part of free market capitalism, so the problem will never go away completely. Eventually capital accumulates again, and will corrupt the institutions meant to control it.

A smart dictator is probably harder to corrupt, but they die and then if you get unlucky with the next dictator the car will crash and burn.

8. balazstorok ◴[] No.43985741{5}[source]
I don't think there is exists a magical political system that we set up and it magically protects us from corruption. Forever. Just like any system (like surviving in an otherwise hostile nature) it needs maintenance. Maintenance in a political or any social structure is getting off your bottom and imposing some "reward" signal on the system.

Corruption mainly exists because people have low standards for enforcing eradication of it. This is observable in the smallest levels. In countries where corruption is deeply engraved, even university student groups will be corrupted. Elected officials of societies of any size will be prone to put their personal interests in front of the groups' and will appoint or employ friends instead of randomers based on some quality metrics. The question is what are the other people willing to do? Is anyone willing to call them out? Is anyone willing to instead put on the job themselves and do it right (which can be demanding)?

The real question is how far are the individuals willing to go and how much discomfort are they willing to embrace to impose their requirements, needs, moral expectations on the political leader? The outcomes of many situations you face in society (should that be a salary negotiation or someone trying to rip you off in a shop) depend on how much sacrifice (e.g. discomfort) you are willing to take on to get out as a "winner" (or at least non-loser) of the situation? Are you willing to quit your job if you cannot get what you want? Are you going to argue with the person trying to rip you off? Are you willing to go to a lawyer and sue them and take a long legal battle? If people keep choosing the easier way, there will always be people taking advantage of that. Sure, we have laws but laws also need maintenance and anyone wielding power needs active check! It doesn't just magically happen but the force that can keep it in check is every individual in the system. Technological advances and societal changes always lead to new ideas how to rip others off. What we would need is to truly punish the people trying to take advantage of such situations: no longer do business with them, ask others to boycott such behaviour (and don't vote for dickheads!, etc.) -- even in the smallest friends group such an issue could arise.

The question is: how much are people willing to sacrifice on a daily basis to put pressure on corrupt people? There is no magic here, just the same bare evolutionary forces in place for the past 100,000 years of humankind.

(Just think about it: even in rule of law, the ultimate way of enforcing someone to obey the rules is by pure physical force. If someone doesn't listen, ever, he will be picked up by other people and forced into a physical box and won't be allowed to leave. And I don't expect that to ever change, regardless of the political system. Similarly, we need to keep up an army at all times. If you simply go hard pacifist, someone will take advantage of that... Evolution. )

Democracy is an active game to be played and not just every 4 years. In society, people's everyday choices and standards are the "natural forces of evolution".

9. ranger_danger ◴[] No.44015461{5}[source]
So far I have not seen that it is possible, because you cannot get the majority to agree on who gets to say what the limit is.