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" "But the point, as I argued with Caplan, is not that managers are inherently less intelligent or capable as individuals. Rather, it’s that hierarchical organizations are—to borrow that wonderful phrase from Feldman and March—systematically stupid. For all the same Hayekian reasons that make a planned economy unsustainable, no individual is “smart” enough to manage a large, hierarchical organization. Nobody–not Einstein, not John Galt–possesses the qualities to make a bureaucratic hierarchy function rationally. Nobody’s that smart, any more than anybody’s smart enough to run Gosplan efficiently–that’s the whole point. No matter how insightful and resourceful they are, no matter how prudent, as human beings in dealing with actual reality, nevertheless by their very nature hierarchies insulate those at the top from the reality of what’s going on below, and force them to operate in imaginary worlds where all their intelligence becomes useless. No matter how intelligent managers are as individuals, a bureaucratic hierarchy makes their intelligence less usable.
Kevin Amos Carson (born 1963) is an American author, anarchist and political theorist.
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The natural effect of unfettered market competition is socialism. For a short time the innovator receives a large profit, as a reward for being first to the market. Then, as competitors adopt the innovation, competition drives these profits down to zero and the price gravitates toward the new, lower cost of production made possible by this innovation (that price including, of course, the cost of the producer’s maintenance and the amortization of her capital outlays). So in a free market, the cost savings in labor required to produce any given commodity would quickly be socialized in the form of reduced labor cost to purchase it.
We have probably already passed a “singularity,” a point of no return, in the use of networked information warfare. It took some time for employers to reach a consensus that the old corporate liberal labor regime no longer served their interests, and to take note of and fully exploit the union-busting potential of Taft-Hartley. But once they began to do so, the implosion of Wagner-style unionism was preordained. Likewise, it will take time for the realization to dawn on workers that things are only getting worse, that there’s no hope in traditional unionism, and that in a networked world they have the power to bring the employer to his knees by their own direct action. But when they do, the outcome is also probably preordained. The twentieth century was the era of the giant organization. By the end of the twenty-first, there probably won’t be enough of them left to bury.
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