Fragility of Social and Economic Systems and the Role of “Modality”

Abstract

The problem of the progressive dysfunctionalization of social and economic systems is the starting point for intellectual exercise undertaken in the article. The origins and course of the 2008 global financial crisis show that the notion that the capacity to self-stabilize (to keep disequilibria under control) in the case of every complex dynamic system deteriorates over time is the pivotal issue. However, social systems interact with one another in numerous ways, for instance by communicating which is one of the most important interactions. We call the space of intersystem communication a “modality.” That term, explained in this article, describes mechanisms in which deliberation helps stabilize social systems by changing the rules of the game, through the efforts of social agents acting as observers of various social systems of which they are part. We argue that the communication space is visibly deteriorating, by being captured by a particular set of economic ideas. We see this as a threat because “variety is the spice of life,” and robustness of the economy depends on existence of a diverse portfolio of ideas, together with actors being ready and institutionally encouraged to defend them. We suggest some solutions that may bring more vigor to modality.