The Coordination Failure Tax

Architectural failures don't add — they multiply.

50% capacity loss

Aggregation destroys local information — central policy sees only averages.

50% capacity loss

Decision latency is mismatched to the timescale of disturbances.

50% capacity loss

Representation chains are too deep for citizen preferences to survive.

50% capacity loss

The institution monitors too few dimensions of the system it governs.

Intuitive (Additive) Model

0.0%

of baseline governance capacity

Actual (Multiplicative) Outcome

6.25%

of baseline governance capacity

You are paying a hidden tax of

-6.25 percentage points

The gap between what you think you lose and what you actually lose.

How this works

Each failure mode destroys a fraction of the capacity that remains after the previous failures have done their damage. The failures are sequential, not parallel.

If each of four failures destroys 50% of capacity, the intuitive additive model says you lose 4 × 50% = 200% — you're at zero. The actual multiplicative result is 0.5⁴ = 6.25% of baseline.

This is why institutions that look “a bit broken” in several ways simultaneously are often categorically incapable of the functions they claim to perform.

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