The Great Simplification with Nate Hagens cover image

Daniel Schmachtenberger: “Bend not Break #4: Modeling the Drivers of the Metacrisis”

The Great Simplification with Nate Hagens

NOTE

Incentives, Deterrence, and Multipolar Traps

In the market, incentives drive organization, but if incentives fail, deterrence is necessary. Markets are not effective at deterrence, so the state intervenes by making actions illegal with penalties. This creates a multipolar trap where short-term gains lead to destructive actions. Nation-states solve multipolar traps by implementing rule of law and a monopoly of force to enforce regulations, ensuring sustainable practices such as preserving national parks.

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