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Bewildered's avatar

I just don’t see decision markets being used by anyone except painfully few intellectuals - and sometimes random gamblers at the right moment. To assume that Wall Street is a good proxy for decision markets in this context (cultural drift) would be like saying people go to university is because they are intellectually curious. We see universities have drifted, too. Finally, what qualifies as conservative seems to be the result of our lack of concision - maybe I’m confused, weren’t the Luddite’s then, very conservative? Everything is adrift. Traveling around the globe toward the east we end up in the West.

Ben Hoffman's avatar

Language is overwhelmingly the most time-tested cultural meta-institution human beings have for collective problem-solving. However, object-level descriptive language depends on differential signal costs (see https://www.lesswrong.com/posts/ybG3WWLdxeTTL3Gpd/communication-requires-common-interests-or-differential ) that are being suppressed and replaced with loyalty signals. This corruption of language limits the expressive range and appeal of any decision market or futarchy, unless we take into account explicitly the mutual relationship between language and accountability mechanisms.

As you know, bets are a tax on bullshit. Maybe excepting Switzerland, the US seems like the most classically liberal nation-state, and it still has fiat currency, bailouts, rule by exception-making, all of which seriously weaken US currency as a means for resolving disagreements. This is compounded by declining adequacy of the civil courts, and (fortunately somewhat weakening) laws against gambling.

I don't see a way out of this short of a cyclical civilizational collapse, unless groups smaller than existing states (realistically, most likely much smaller) opt in to high-accountability arrangements with real resources at stake, to enable them to send more credible signals to each other and therefore capture more of the benefits of language than the surrounding society. Such groups would, if they can model external political threats adequately, quickly realize a strategic advantage.

Calvinism seems to have been historically important specifically as a way for people with detailed-reputation-dependent economic niches to recognize each other: https://benjaminrosshoffman.com/calvinism-as-a-theory-of-recovered-high-trust-agency/

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