more_money_can_be_made_by_creating_problems_than_solving_them

Problem Maintenance vs. Problem Solving (Capitalism Dynamics)

The observation that in certain economic and political structures, creating, prolonging, or managing a problem can be more profitable and sustainable than genuinely solving it.

💰 Industries Driven by Problem Maintenance

The financial models of these sectors often reward problem maintenance or artificial scarcity:

  1. The Military-Industrial Complex (MIC) 🛡️
  2. The Problem: Conflict and geopolitical instability (the existence of a persistent “Them”).
  3. The Profit: Guaranteed, massive government contracts for weapons and military hardware thrive on the continuation of threats, real or perceived.
  4. The Paradox: Lasting world peace would lead to a collapse in demand and revenue, making the business model dependent on conflict.
  1. Healthcare and Pharmaceuticals 💊
  2. The Problem: Chronic illness and dependency.
  3. The Profit: Focuses on developing drugs that manage chronic conditions indefinitely (a lifetime subscription), rather than curative treatments (a one-time transaction).
  4. The Paradox: A cure is financially less rewarding than a long-term maintenance drug, leading to research prioritization based on market longevity.
  5. Cybersecurity and Anti-Virus Software 💻
  6. The Problem: Evolving digital threats (viruses, malware).
  7. The Profit: Relies on the constant evolution of threats requiring continuous subscription services and updates.
  8. The Paradox: A truly perfect, unhackable security system would eliminate the need for perpetual subscription revenue.

🎯 The Sliptun Effect and Incentives

  1. This dynamic is an example of the sliptun effect: the stated goal is to eliminate the problem, but the financial incentive is to ensure the threat persists at a manageable, profitable level.
  2. This represents a key critique where market incentives prioritize financial value (making money) over social value (ending a problem).
  3. Note: The opposite dynamic exists in disruptive innovation, where a solution that offers overwhelming efficiency and convenience (e.g., self-driving technology, cheap solar power) can make massive profits by eliminating an old problem or market need.
more_money_can_be_made_by_creating_problems_than_solving_them.txt · Last modified: 2025/12/02 07:41 by geoff