The world could run on older hardware if software optimization was a priority

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...

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.

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.

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.

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.

Gaping wound that lifted billions out of powerty and produced the greatest standard of living in human history.