[ranprieur]

Key sentence: "When systems that were designed for resilience are optimized instead for efficiency, they break."

[hliyan]

My personal formulation of this, which I arrived at during COVID, is: "Some inefficiencies are safety margins"

[pluto_modadic]

three kinds of "inefficiencies"

- safety margins (keep, to not harm the customer)

- employee benefits (keep, to not harm the employee, e.g. retirement)

- profit margins for stockholders (you could probably get rid of this)

[andrewflnr]

I'm so glad this idea is starting to go mainstream.

[Animats]

Me too.

In the days before electricity deregulation, power companies had rates regulated to achieve a fixed return on investment. This tended to result in overbuilding. Not huge overbuilding, but about 10% - 20%. The quest for "efficiency" wiped out some of that safety margin.

[euroderf]

So, the financial incentives are wholly dysfunctional, innappropriate, and badly thought out (if thought about at all).