How to spot failure

How do you know there’s failure? After all, that’s precisely when government rules want to intervene—when markets or support systems break down.

One way is to listen to what people are talking about, complaining about, or disgusted by. But that’s too vague. Talk is cheap, as they say. Some people even make a living out of using their voice to advocate for a proclaimed cause. That’s often the case. Yet it can be unclear whether the professed crisis is real—and, if so, how significant it is in relation to other problems.

One potential indicator of the relative importance of a systemic breakdown is the number of people willing to jump in and give their time to fix it. I’m not talking about those willing to talk about it, but those actually willing to do the necessary work.

What is the volunteerism turnout for that cause, measured in labor hours?

But sometimes people in the greater group aren’t able to jump in and help out. For instance, if a homeowner is struggling to keep up the exterior appearance of their home, a neighbor might step in and mow their lawn. Once saplings are growing along the side of the garage and the window shutters are missing slats, the help needed goes beyond volunteerism.

Here it might be noted that failure is shown in an inability to meet social norms or standards.

Lastly, a sign of failure can be picked up in migration away from the problem. Crime is always an easy example. Once people feel unsafe, they no longer visit the park, eat at the take-out stand, or drive along a road well known for accidents. They simply leave.

These are the three ways to spot failure: people devote their time to correct it, norms left unmet, and exit.