No. 365 · Fixing problems · Economics
Shirky Principle
Institutions tend to preserve the problem to which they are the solution.
In the Almanac
“The March of Dimes”, 1938–1958 · “Tax-preparation firms”, 2002–2019
Both stories in full, three ways to use it and where it misleads.
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Questions
What is Shirky Principle?
The Shirky Principle says that once an organisation's budget, jobs and identity depend on a problem, it has a quiet incentive to keep that problem alive. It's often drift rather than villainy, but the effect is real.
How do you use Shirky Principle?
When you hire help or buy a service, ask what happens to them if your problem disappears. Favour helpers who aim to make themselves unnecessary, and check whether you're clinging to a problem because it gives you a role.
When does Shirky Principle matter?
Shirky Principle is one of the 40 mental models for fixing problems, the situations where you ask: Why does this keep going wrong, and how do I fix it for good? Within that, it belongs to “Rewards and rules”, alongside Cap and Trade, Coase Theorem and Goodhart’s Law.
What is an example of Shirky Principle?
Two stories show it at work: The March of Dimes (1938–1958) and Tax-preparation firms (2002–2019). Both are told in full in The Mental Models Daily Almanac, which has two stories for each of its 365 models.
Which mental models are related to Shirky Principle?
Bias from Incentives, Lock-in and Self-Preservation. Shirky Principle itself comes from economics.