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1. Optimization like outsourcing sacrifices resiliency in the name of maximizing profit. In the software world trying to save money by keeping no backups or not

1. Optimization like outsourcing sacrifices resiliency in the name of maximizing profit. In the software world trying to save money by keeping no backups or not allocating additional server capacity in the name of maximizing profits would be seen as insane but that's how US manufacturing has been managed. 2. Economists in general don't account for any externalities or 2nd order effects when it comes to free trade. In theory comparative advantage makes sense, but it doesn't account for how outsourcing cheap manufacturing to China eventually allows them to build up an economic base that threatens the US militarily Basically for the US economy to work requires the system to be completely perfect, anything like a war or pandemic that throws even a minor wrench in an extremely complicated system causes disaster. If we put economists in charge they'd have outsourced all food production because cheaper labor in other countries would be more "efficient". Which would be fine until some sort of famine, then those countries would just keep the food and we'd be stuck with "high value" products while starving

ch4s3 4y ago
> If we put economists in charge they'd have outsourced all food production because cheaper labor in other countries This shows great ignorance of both farming and economics. For cereal crops, labor barely registers as an input.
naravara 4y ago
> Economists in general don't account for any externalities or 2nd order effects when it comes to free trade. Many do. They just don't get hired as lobbyists so their impact on the conversation is limited. The economics that gets done in economics departments is often quite different from the economics that percolates out into popular consciousness. But a lot of it involves math. . .
rossdavidh 4y ago
Analogy to not paying for backups or additional server capacity, is excellent.
- closeparen 4y ago
  It’s really not. Resiliency and capacity headroom are orthogonal to where they’re located. Better analogy would be the cloud. You could imagine a number of different points on the cloud vs. self host spectrum: - Fully dependent on high level APIs of a third party. - Dependent on commodity VMs and dedicated servers from third parties. - Purchase equipment from third parties to host on leased premises with leased connectivity. - Purchase equipment from third parties to host on own land with leased connectivity. - Fabricate your own equipment to host on your own land and lay your own fiber to customers. - Dig your own mines to obtain the raw material for such equipment. Fabricate your own machines to make it.
N1H1L 4y ago
> If we put economists in charge they'd have outsourced all food production because cheaper labor in other countries would be more "efficient". Which would be fine until some sort of famine, then those countries would just keep the food and we'd be stuck with "high value" products while starving I am going to use this line from now on. Your whole comment is brilliant, BTW

ch4s3 4y ago

> If we put economists in charge they'd have outsourced all food production because cheaper labor in other countries This shows great ignorance of both farming and economics. For cereal crops, labor barely registers as an input.

naravara 4y ago

> Economists in general don't account for any externalities or 2nd order effects when it comes to free trade. Many do. They just don't get hired as lobbyists so their impact on the conversation is limited. The economics that gets done in economics departments is often quite different from the economics that percolates out into popular consciousness. But a lot of it involves math. . .

rossdavidh 4y ago

Analogy to not paying for backups or additional server capacity, is excellent.

closeparen 4y ago
It’s really not. Resiliency and capacity headroom are orthogonal to where they’re located. Better analogy would be the cloud. You could imagine a number of different points on the cloud vs. self host spectrum: - Fully dependent on high level APIs of a third party. - Dependent on commodity VMs and dedicated servers from third parties. - Purchase equipment from third parties to host on leased premises with leased connectivity. - Purchase equipment from third parties to host on own land with leased connectivity. - Fabricate your own equipment to host on your own land and lay your own fiber to customers. - Dig your own mines to obtain the raw material for such equipment. Fabricate your own machines to make it.

N1H1L 4y ago

> If we put economists in charge they'd have outsourced all food production because cheaper labor in other countries would be more "efficient". Which would be fine until some sort of famine, then those countries would just keep the food and we'd be stuck with "high value" products while starving I am going to use this line from now on. Your whole comment is brilliant, BTW