
How Much of the Economy is Friction?
Charles Hugh Smith raises the question of how much of the U.S. economy consists of the actual output of goods and services, versus the friction entailed in producing them. As a small example, he cites a physicians’ group that includes ten doctors — and twelve billing clerks.
That’s the general subject of a research paper I did for Center for a Stateless Society (C4SS), The Political Economy of Waste.
The larger and more hierarchical institutions become, and the more centralized the economic system, the larger the total share of production that will go to overhead, administration, waste, and the cost of doing business. The reasons are structural and geometrical.
Continue reading “Kevin Carson: How Much of the Economy is Friction?”




