Successful institutions can dissolve from their own premature success

Evidence

Hayek’s determination that the society should dissolve was the product of a peculiar combination of triumphalism and despair. It was motivated in part by his belief that an encouraging po liti cal environment and an increasing mutual awareness among freemarket economists diminished the need for regular meetings. In this sense, the society’s raison d’être was the victim of its unexpected and premature success. Any satisfaction derived from these victories was tempered, however, by his frustration at the continued failure of the society’s internal debates to fulfi ll his original aspirations. — Angus Burgin, The Great Persuasion, 314

Categorization

  • XREF: The classic ‘goal displacement’ or success-dissolution dynamic, parallels the Milgrom law-merchant analysis of institutions emerging then changing when conditions shift. — connects to: Economic success built on coercion may collapse when rule liberalizes; Hyperspecialized institutions cease being functional and become deterrence nuclei — Jean Baudrillard, Simulacra and Simulation, 264; First modernity’s own successes eroded its authority and created self-directed individuals — Shoshana Zuboff, The Age of Surveillance Capitalism, 111 (+7 more)
  • APHORISMS: The idea that an organization’s raison d’être can be the victim of its own unexpected success is a rare enduring insight about institutional life cycles.

Broader Connections