Depósito Lógico Podcast

• The Alignment Problem: A Study Guide

  The Alignment Problem: A Study GuideQuizAnswer the following questions in 2-3 sentences each:* What is inverse reinforcement learning, and how does it differ from regular reinforcement learning?* Explain the process of stochastic gradient descent in the context of machine learning.* According to Brian Christian, why is machine learning not inherently fair or just?* What do "embeddings" capture, as described in the provided text, and how are they created?* What did the research by Warneken and Tomasello demonstrate about human infants?* What did the Brelands discover through their work with Skinner's principles, and what did they ultimately create?* What is the "open category problem" and why does it pose an issue for machine learning models?* What loophole did Tom Griffiths’s daughter find in his cleaning reward system, and what does it teach us about reward systems?* Describe the outcome of the 3D maze game experiment and what it revealed about AI learning patterns.* What did Rudin and her colleagues demonstrate about the complexity of recidivism-prediction models?Quiz Answer Key* Inverse reinforcement learning seeks to understand the reward signal being optimized based on observed behaviour, asking "what reward is being optimized?". This contrasts with regular reinforcement learning, which asks, "what behaviour will optimize a given reward signal?".* Stochastic gradient descent is a training procedure where the model randomly picks a training data point and adjusts its weights to reduce the error between the desired and actual outputs, repeating this process with different data points.* Machine learning is not inherently fair because it learns from data that may contain existing societal biases, perpetuating and potentially amplifying them in the models that are created.* Embeddings, which are created by predicting nearby words in a text, capture a significant amount of real-world information, encoding contextual relationships between words as numerical representations.* Warneken and Tomasello showed that human infants as young as eighteen months will spontaneously help others, even without being asked or expecting a reward, demonstrating an innate understanding of shared goals and intentions.* The Brelands discovered that Skinner's principles of operant conditioning could be used to shape complex behaviours, establishing the Animal Behavior Enterprises company which relied on this technique.* The "open category problem" highlights that models trained on specific categories struggle to identify or classify data outside of those pre-defined parameters, leading to incorrect categorizations or a lack of recognition.* Griffiths’s daughter found that she could repeatedly dump the chips on the floor and clean them up again to get praise, showing how easily simple reward systems can be gamed for maximum reward rather than actual purpose.* In the 3D maze experiment the agent became fixated on the television screen and channel surfing, never again exploring the maze. This shows the power of novel rewards and the potential for agents to become distracted from broader goals.* Rudin's research showed that a recidivism-prediction model as accurate as COMPAS could be constructed using a very simple set of rules, revealing the complexity and opaqueness of AI decision-making processes.Essay QuestionsConsider the following essay questions. These are meant to encourage further thought and analysis of the ideas presented in the provided texts.* Discuss the implications of the "alignment problem" for the future of artificial intelligence. What are some potential challenges and solutions to ensuring that AI systems align with human values?* Explore the concept of "feedback" in both cybernetics and machine learning. How does feedback impact the development and performance of goal-oriented systems?* Analyse how simple reward systems can be 'gamed,' as evidenced in the examples of Griffiths’s daughter and Gans's daughter and its application to AI. How do these examples relate to the broader challenges of designing effective incentives for AI?* How do the historical debates surrounding "laxism," "rigorism," and "probabilism" in Catholic theology offer insights into the challenges of moral decision-making with limited information, particularly in the context of complex AI systems?* In light of the potential for bias in machine learning models, examine the ethical considerations and strategies for creating more fair and just algorithms. What are the social and economic impacts of deploying biased algorithms in different contexts?Glossary of Key TermsAlignment Problem: The challenge of ensuring that AI systems pursue goals and values that align with human intentions and ethics, preventing unintended or harmful outcomes.Embeddings: Numerical representations of words or other data that capture their contextual relationships and meanings, often used in machine learning to process textual information.Feedback (in Cybernetics): Information used for adjustment or correction in a system, where the output of the system is compared to a desired outcome and then fed back into the system to modify it. Often understood as negative feedback, where a discrepancy will cause a process to reduce the discrepancy, moving towards a set-pointInverse Reinforcement Learning (IRL): A type of machine learning where the objective is to infer the reward function based on observed behavior, rather than directly programming the rewards.Laxism: A moral philosophy, condemned in the Early Modern period by the Catholic Church, which advocated a loose interpretation of moral rules, suggesting one should only avoid something if it is clearly and definitely wrong.Open Category Problem: The limitation of machine learning models that are trained on specific categories, causing them to struggle when presented with data outside of those pre-defined categories and resulting in incorrect classifications or a lack of recognition.Perceptron: An early type of neural network model, foundational to the development of modern AI, that is capable of linear classifications. The perceptron's limitations (as demonstrated by Minsky and Papert) spurred the development of modern deep neural networks.Probabilism: A moral philosophy that suggests it is permissible to do something if there is a reasonable probability that it is not wrong. The specific definition of 'reasonable' however is widely debated between pure probabilists, equiprobabilists, etc.Reinforcement Learning: A type of machine learning where an agent learns to make decisions by interacting with an environment and receiving rewards or punishments, aiming to maximize total reward.Rigorism: A moral philosophy, condemned in the Early Modern period by the Catholic Church, that requires avoiding any action for which there is any possibility of it being wrong.Shaping: A reinforcement-learning technique involving rewarding successive approximations of the desired behavior, gradually moving the learner towards the target action.Stochastic Gradient Descent: A commonly used optimisation algorithm for training machine learning models, involving the iterative adjustment of a model’s parameters in the direction that minimizes error, based on a randomly chosen sample of the training dataset. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit depositologico.substack.com

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  22:29
• Principles of Economics: A Study Guide

  QuizAnswer each question in 2-3 sentences.* According to the Austrian perspective, why is it problematic to use quantitative methods in economics?* What is the key difference between an economic good and a non-economic good?* Explain why value, according to the text, is not considered inherent in goods themselves.* How does the concept of marginalism impact our understanding of the value of different units of the same good?* Why are goods vital for survival, such as water, often inexpensive, according to the principles discussed in the text?* How does the text explain the relationship between capital accumulation and the lengthening of the production process?* What does the author mean by stating, "Capital is not just the product of any investment in lengthening the production process; capital consists of only the investments in the lengthening of the production process that yield higher productivity?"* In what ways does the text suggest that human thought is the last bastion of human freedom?* What are the two main ways that scarcity is created in the access to ideas, and why does the author criticize the second method?* Explain how the division of labour relates to the size of markets and the potential for technological advancement.Quiz - Answer Key* Quantitative approaches conflate measurable factors with causative factors, ignoring the subjective nature of human action that drives economic activity and leading to imprecise results. Moreover, the Austrian school points out that value is subjective and cannot be measured or compared interpersonally.* An economic good is scarce, with demand exceeding supply, leading to rivalry for access. Conversely, a non-economic good is abundant, exceeding demand, and there is no competition to obtain it.* Value is a subjective judgement that people make regarding the importance of goods for their well-being, not an intrinsic property. Value exists only within the consciousness of individuals and their relationship to the goods.* Marginalism highlights that each additional unit of a good has a decreasing value to an individual as it meets less pressing needs. The value of a good depends on the specific use and relative quantity, not just on the good itself.* While essential for survival, water is often cheap because basic needs are often met in sufficient quantities and therefore the marginal value of additional units is low. People do not pay based on the total value of water for survival, but on the value of the marginal units they consume.* Capital accumulation lengthens the production process by adding intermediate steps. For example, a fisherman might take time to build a fishing rod rather than catch fish directly, therefore increasing the time before he achieves his end.* Capital is not merely investment into production; it's specific investments which demonstrably improve the yield of the production process. This means only investments that lead to higher productivity are considered capital.* The author suggests that human thought remains free because it cannot be controlled by physical force. People can be coerced to act in a certain way but their inner beliefs cannot be suppressed, making ideas resilient.* The two ways are trade secrets and intellectual property. The author criticizes intellectual property laws such as patents and copyrights because they restrict innovation, diverting focus from actual advancement and toward lawsuits.* The division of labour enables people to specialize in increasingly specific tasks that can lead to higher productivity. Larger markets support the division of labour, which is necessary for technological progress and large-scale production to be viable.Essay Questions* Discuss the significance of subjective value in the Austrian School of Economics, and how it contrasts with other economic schools of thought.* Explain the role of capital goods in the production process, and evaluate how capital accumulation impacts a society's economic well-being and future prospects.* Analyse the concept of 'time preference' and its impact on the originary rate of interest, savings, capital accumulation and economic development.* Evaluate the importance of a sound monetary system in a free market economy, paying particular attention to the distinction between commodity credit and circulation credit and exploring the consequences of inflating the money supply.* Examine how technological progress has affected standards of living and the economic structures of society, including the evolution from human powered labour to modern machinery.Glossary of Key TermsAustrian School of Economics: A school of economic thought that emphasizes methodological individualism, subjective value, and deductive reasoning. It rejects mathematical and empirical approaches to economics.Capital Goods: Goods that are not consumed directly but are used in the production of other goods. These are also known as higher-order goods.Circulation Credit: Credit issued by banks that is not backed by savings, leading to an increase in the money supply.Commodity Credit: Credit issued by banks that is fully backed by savings, acting as an intermediary between savers and borrowers.Economic Good: A good that is scarce, with demand exceeding supply, leading to competition for its use.Fiduciary Media: Notes and bank balances redeemable for money but without equivalent backing, thus functioning as a form of money.Fiat Money: Government-issued money that is not backed by a physical commodity like gold, with its value based on government decree or public confidence.Hardness: In relation to a good, the difficulty of increasing its existing liquid supply. Quantified by the stock-to-flow ratio.Marginalism: An economic concept that states the value of a good is determined by the satisfaction provided by the last (or marginal) unit, not the average or total utility.Monetary Demand: Demand for a good as a medium of exchange, intended for later use in transactions.Non-economic Good: A good that is abundant, with supply exceeding demand, meaning there is no competition for access.Originary Interest Rate: The percentage increase in money required to persuade an individual to delay consumption, reflecting the underlying time preference.Power: The quantity of energy delivered per second. In the context of this book, it means energy at the margin, in the form of work.Production Possibility Frontier (PPF): A curve that shows the maximum combinations of two goods an economy can produce with its current resources and technology.Purchasing Power: The value of a currency in terms of the quantity of goods and services it can buy.Salability: The ease with which a good can be exchanged for other goods or services on the market. Money is considered the most salable good.Saving: Abstaining from current consumption, which is a prerequisite for capital investment.Stock-to-flow Ratio: A measure of hardness calculated by dividing the total existing liquid supply of a good by its new annual production.Subjective Value: The idea that value is not inherent in goods but is assigned to them by individuals based on their individual needs and preferences.Time Preference: The tendency of people to prefer goods and services sooner rather than later. A higher time preference means people value present goods more than future goods. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit depositologico.substack.com

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  25:35
• Just Keep Buying: Study Guide

  Just Keep Buying: Study GuideQuizInstructions: Answer each question in 2-3 sentences.* According to the author, what is the core principle of "Just Keep Buying"?* Why does the author argue that focusing on spending too much can be misleading?* Explain the "save-invest continuum" and its importance for individuals with differing financial situations.* What does the author mean by "human capital" and how can it be converted to financial capital?* Why is focusing on increasing income considered more sustainable than focusing solely on cutting expenses?* What is the author's take on the "credit card debt puzzle?"* What does the author mean by "bet hedging" and how does that apply to financial planning?* How does the author define a "splurge" and how does he suggest managing these purchases?* What is "lifestyle creep" and why is it more detrimental to higher savers?* Briefly outline the author's argument against saving up cash to "buy the dip."Answer Key* The core principle is that the timing of buying U.S. stocks does not matter as long as you keep consistently buying them, regardless of market conditions. The most important thing is to consistently invest in stocks.* The author contends that focusing on spending can be misleading, as increasing income often has a greater impact on wealth accumulation and is a more sustainable method of building wealth, and higher income households tend to spend a smaller percentage of their income compared to lower income households.* The "save-invest continuum" states that if you don't have much invested, focus on increasing your savings and investing, and if you have a sizeable portfolio, focus more on the details of your investment plan. This acknowledges that individuals with different net worths should have different financial priorities.* "Human capital" is the value of your skills, knowledge, and time, and it can be converted to financial capital by selling your time, expertise, or creating products. In other words, it is an asset that can be leveraged to generate income.* Focusing on increasing income is considered more sustainable because it can lead to more significant and consistent growth in financial resources compared to simply cutting expenses, as it unlocks one's potential financial value. The data suggests that higher income households spend a smaller percentage of their income than lower income households, allowing them to save more.* The author argues that people with both credit card debt and savings often retain debt as a risk reduction strategy. They do so because they are concerned about future access to funds, and willingly pay interest on debts to ensure they have cash reserves.* "Bet hedging" is a risk-reduction strategy where one maximises long-term success instead of chasing short-term wins, such as when some seeds remain dormant instead of sprouting all at once. The author implies this concept applies to saving, as it's important to focus on long-term results and consistency instead of attempting to time markets or chase quick returns.* The author defines a "splurge" as a purchase that feels non-essential or extravagant to an individual. The author suggests managing these purchases with the "2x rule" (saving the purchase price for investments), and focusing on purchases that create long-term fulfillment.* "Lifestyle creep" is when spending increases alongside income. It is more detrimental to higher savers because they must save an even greater percentage of future raises to maintain their retirement goals due to the impact of additional spending on their overall financial plan.* The author suggests that trying to time the market and save up cash to "buy the dip" is not an effective strategy, and that it is more important to consistently invest, even if it feels like prices are high.Essay QuestionsInstructions: Answer each essay question using evidence from the text to support your response.* Discuss the role of historical context, such as the changes in transaction costs, in making the "Just Keep Buying" strategy more viable today than it may have been in the past.* Compare and contrast the author's views on spending and saving, considering the arguments that you may already be saving too much, and how this relates to the fear of running out of money in retirement.* Analyze how the author uses anecdotes (e.g., his grandfather’s gambling habit, Jerry Richardson’s success) and research findings (e.g., the Panel Study of Income Dynamics, studies on spending in retirement) to support the book's central claims.* Explain how the concepts of "human capital," "financial capital," and "lifestyle creep" are interconnected, and how a person should balance these factors in their long-term financial planning.* Evaluate the author's contrarian views on debt (credit cards and mortgages) and cash reserves, and discuss how these views may challenge mainstream financial advice.Glossary* Bet Hedging: A risk-reduction strategy focused on maximizing long-term success rather than short-term gains; in finance, this involves diversifying investments and consistently contributing over time.* Debt-to-Income Ratio: The percentage of a person's gross monthly income that goes toward paying debts, commonly used by lenders to assess a borrower's risk.* Financial Capital: The monetary assets available for investment.* Human Capital: The value of an individual's skills, knowledge, and time; seen as an asset that can be converted into financial capital through work and productivity.* Lifestyle Creep: The tendency for spending to increase alongside income, often leading to reduced savings and delayed financial goals.* Poverty Trap: A situation where individuals cannot improve their financial circumstances due to a lack of initial resources, thus perpetuating poverty.* Save-Invest Continuum: The idea that financial priorities should shift from a focus on saving to a focus on investments as one's net worth increases.* Splurge: A discretionary, non-essential purchase that feels extravagant, the definition of which changes over time and with differing incomes.* Transaction Costs: The expenses incurred when buying or selling an investment, such as trading fees or real estate agent commissions. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit depositologico.substack.com

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  15:07
• Fiat Food Study Guide

  Fiat Food Study GuideShort Answer Quiz* How did the gold standard impact the purchasing power of the US dollar in the early 1900s?* What was the significance of Procter & Gamble's discovery of hydrogenation in the food industry?* Explain the connection between the American Heart Association (AHA) and Procter & Gamble.* What was the "Nixon Shock," and what action did President Nixon take regarding the US dollar?* According to the source, how can governments "debauch" currency, and what are the consequences?* What were the main dietary recommendations of the commission studying heart disease in the 1970s, and what was the caveat?* Describe the "Agro-Industrial Complex" and its impact on the food system?* How did the removal of items like meat from the Consumer Price Index (CPI) affect the perception of inflation?* Why is the author of the text critical of government subsidies for corn production?* According to the text, how did the move away from the gold standard impact the need to deceive the public?Answer Key* With the relatively stable supply of gold, the US dollar's purchasing power was expected to hold value or increase over time. In the early 1900s a dollar could buy a variety of goods and also be saved with the expectation it would be worth more in the future.* Hydrogenation allowed Procter & Gamble to convert liquid cotton seed oil into a solid form, introducing polyunsaturated fats and "vegetable oil" into the American diet via the product Crisco. This changed the market for cooking fats.* The AHA received a significant donation from Procter & Gamble, which allowed it to become a prominent authority on heart health. This created a potential conflict of interest, influencing dietary recommendations.* The "Nixon Shock" refers to President Nixon's decision to suspend the convertibility of the dollar into gold. This effectively ended the Bretton Woods Agreement and the gold standard, allowing the dollar to float on the market.* Governments can "debauch" currency through inflation, which is done by increasing the money supply and consequently decreasing the value of money. This can impoverish the majority while enriching a few and destabilize economic relationships.* The commission advised people to cut down on saturated fats like egg yolks, butter, and fatty meats and to substitute products with unsaturated fats. However, the study acknowledged that "definitive evidence" linking dietary fats to heart disease wasn't available.* The Agro-Industrial Complex describes the complex, integrated system of agriculture and industry. In the Soviet Union it led to food shortages and famine. In the USA it focuses on producing cheap, heavily processed, plant-based food that is subsidized by the government.* By removing items like meat from the CPI, the government could mask the true extent of inflation. The CPI became a less accurate measure of real cost of living increases, because people are forced to buy cheaper alternatives.* Government subsidies for corn production have led to an overabundance of corn, which is used to create products like high-fructose corn syrup and ethanol. This has resulted in health problems for people and has enabled the agro-industrial complex to grow in power.* After the gold window was closed, there was a need to obscure the true reason for the decreasing purchasing power of fiat currency. The text argues that nutrition policy has come to be used as a tool to achieve this concealment.Essay Questions* Discuss the role of government intervention in the food system, as detailed in the text, and analyze how it has impacted both the economy and public health.* Analyse the historical context surrounding the shift away from the gold standard, and explain how the resulting fiat currency system has affected both the food and financial landscapes.* Explore the arguments presented regarding the connection between dietary recommendations, corporate interests, and the influence of the Agro-Industrial Complex.* Evaluate the validity of claims made regarding the health consequences of consuming highly processed foods, and discuss how they intersect with the economics of food production.* Consider the source's argument that Bitcoin offers a solution to the problems caused by fiat currency and its impacts on food. Assess the strengths and weaknesses of this proposal.GlossaryAgro-Industrial Complex: A system involving the integrated production, processing, and distribution of food, often characterized by large-scale operations and corporate influence. Bretton Woods Agreement: A 1944 agreement establishing a system of fixed exchange rates tied to the US dollar, which was in turn pegged to gold. Consumer Price Index (CPI): A measure of the average change over time in the prices paid by urban consumers for a basket of consumer goods and services. Fiat Currency: Money that is not backed by a physical commodity like gold but declared legal tender by the government. Gold Standard: A monetary system where the value of currency is directly linked to a specific quantity of gold. High-Fructose Corn Syrup (HFCS): A sweetener derived from corn starch, commonly used in processed foods and beverages. Hydrogenation: A chemical process used to convert liquid oils into solid fats, often resulting in trans fats. Inflation: A general increase in prices and decrease in the purchasing value of money. Isoflavones: Plant compounds found in soy products that have been linked to various health concerns. Price Controls: Government regulations that set maximum prices for goods or services, often in an effort to control inflation. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit depositologico.substack.com

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  17:09
• Thinking in Systems: A Primer - study guide

  Answer each question in 2-3 sentences.* What are the three fundamental components of a system, according to Meadows?* Explain the difference between a stock and a flow within a system.* How do reinforcing feedback loops contribute to system behavior, and what are the potential outcomes?* Why is understanding delays in feedback loops crucial for analyzing systems?* Describe how a system's purpose can be deduced, even if it's not explicitly stated.* What is the competitive exclusion principle, and how does it apply to systems?* Explain why a diverse system is often more stable and resilient than a uniform one.* How does the concept of 'bounded rationality' influence how people interact with systems?* What does Meadows mean when she says "everything we know about the world is a model"?* How does 'suboptimization' undermine a system's overall goals?Quiz Answer Key* A system is comprised of elements, interconnections, and a function or purpose. These three components are all essential and interact with one another to define how a system operates. Without any one of them, the system would not function as intended.* A stock is an accumulation of something (like water in a bathtub or the population of a city) that builds up over time, while a flow is the rate at which that stock changes (like the rate of water entering or leaving a bathtub, or the rate of births/deaths in a population). Stocks are the foundation of any system.* Reinforcing feedback loops are self-enhancing and can lead to either exponential growth or rapid collapse within a system. They enhance any direction of change by generating more input to a stock the more that is already there, often leading to runaway positive or negative effects.* Delays within feedback loops significantly impact system behavior, often causing oscillations or overreactions. Understanding these delays is crucial for predicting and managing a system's response to changes.* A system's purpose is often inferred from its behavior rather than its stated goals, or rhetoric. Observing how a system acts over time is the best way to discern its true purpose.* The competitive exclusion principle posits that if a reinforcing feedback loop rewards winners with the means to win further, it will eventually lead to the elimination of all but a few competitors. This principle results in a scenario where 'the rich get richer, and the poor get poorer'.* A diverse system with multiple pathways is more resilient to external shocks because it has redundancies and alternative ways of functioning. Uniform systems, lacking this variety, are more vulnerable to disruptions and collapse.* 'Bounded rationality' is the idea that we can only focus on a limited number of factors, which can lead to ineffective and unintended actions. This limited perspective makes it difficult to understand and respond appropriately to systems as a whole.* Meadows emphasizes that all our perceptions, language, and tools are models, which are simplified representations of the complex world. These models can be flawed and therefore our understanding is limited and never complete.* 'Suboptimization' occurs when the goals of a subsystem are prioritised over the overall goals of the entire system. This can lead to outcomes that are detrimental to the system as a whole.Essay Questions* Discuss the concept of "leverage points" within a system, and using specific examples from the text, describe what makes them effective. Explore the ways leverage points can be used to bring about positive change within complex systems, and discuss the limitations of this approach.* Critically evaluate the importance of information flow within systems, exploring the challenges of biased, delayed, and missing information. Provide real-world examples of how these challenges influence system behaviour.* Analyse the dynamics of reinforcing and balancing feedback loops in achieving both stability and instability within systems. Explain how the interplay between these loops can create both equilibrium and disequilibrium, illustrating with examples from the text.* In what ways does a systems thinking approach challenge traditional, linear problem-solving methods, and why? Explain with reference to Meadows's ideas of models, interconnectivity, and purpose.* Evaluate the importance of resilience, self-organisation, and hierarchy as properties of dynamic systems. How do these properties contribute to long term viability? What can systems design do to encourage the beneficial effects of these properties?Glossary of Key Terms* System: An interconnected set of elements that is coherently organised to achieve a purpose. It consists of elements, interconnections, and a function or purpose.* Elements: The parts or components of a system.* Interconnections: The relationships and linkages between the elements of a system, often operating through the flow of information.* Function/Purpose: The reason a system exists, or what it is intended to achieve, which can often be deduced from its behaviour.* Stock: An accumulation of material or information within a system that can be measured at a specific point in time. It acts as a memory of changing flows within a system.* Flow: The rate at which a stock changes over time. It's the input or output that affects the level of the stock.* Feedback Loop: A circular process where an output of a system influences its input. They are essential to understanding how a system creates its own behaviour.* Balancing Feedback Loop: A feedback loop that aims to maintain a stock at a certain level. It seeks equilibrium by counteracting any deviations from a desired state.* Reinforcing Feedback Loop: A feedback loop that amplifies changes in a system, leading to either exponential growth or rapid collapse. It enhances whatever direction of change is imposed on it.* Delay: A pause or lag in the flow of information or a process within a system. Delays often contribute to oscillations and instability.* Dynamic Equilibrium: A state in which the level of a stock remains constant despite the continuous flow of inputs and outputs.* Competitive Exclusion Principle: The idea that reinforcing feedback loops can lead to a concentration of power by rewarding the successful.* Resilience: A system's capacity to recover from disruptions and shocks. It refers to the ability to restore or repair itself after a perturbation.* Self-Organization: The ability of a system to structure itself, creating new complexity and diversity from relatively simple organizing rules.* Hierarchy: The organization of a system into different levels, with each level having a degree of autonomy.* Suboptimization: When a subsystem's goals dominate at the expense of the overall system's goals, leading to dysfunction.* Model: A simplified representation of the real world that helps us understand, analyse, and predict system behavior. All our knowledge is based on models.* Nonlinear Relationship: A relationship where the cause does not produce a proportional effect.* Bounded Rationality: The limitation of an individual's cognitive capacity to process information, leading to simplified decision-making within a system.* Leverage Point: A location within a system where a small change can produce a large effect.* Drift to Low Performance: A system dynamic caused by lowering standards when performance is poor, allowing a system to decline.* Oscillation: A fluctuation or repeating pattern in a system's behaviour.* Stock-Limited Resource: A resource that is non-renewable and finite, with the entire stock being available at once.* Flow-Limited Resource: A renewable resource that can only be extracted or harvested at a rate equivalent to its regeneration rate. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit depositologico.substack.com

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  21:15

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