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2 lessons Economics should learn from Aerospace

Posted by Harry Seldon on October 30, 2009

Let’s imagine that economy is an airplane. This airplane goes through a severe zone of turbulence, transforming the cruise in an heavily uncomfortable bumpy ride. Passengers start to complain, and feel more and more insecure. One of them finally calls the stewardess and asks: “What are the pilots doing ? Can’t they move us out of this unbearable situation ?” “Well… there is actually no pilot in this plane”, the stewardess answers politely. The passenger now gets really nervous, and says “What ??? Then we should run to the cockpit and try to do something before it is too late !”. The stewardess, feeling really sorry, replies with a “Uh, I’m afraid there is no cockpit in this plane, Mister”. And the story ends there, with the krach of the “economy” airplane.

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Simplexity: Things are a lot simpler than they seem and vice versa

Posted by Harry Seldon on October 20, 2009

Have you ever heard of simplexity ?

Some systems are a lot simpler than they look like. For instance, let’s consider the shape of a tree. It looks complex, especially if you compare it with a straight line. However, if you have read Mandelbrot or heard of fractals, you know that all you need to draw a tree is a 2 lines pattern, which you repeat a big number of times introducing at each step some light randomness. You can model pretty easily this tree shape. At least you can generate at your will tree shapes. That is typically the way used in computer graphics to generate natural virtual 3D scenes. However, this does not mean you can predict the accurate shape of a tree from its seed.

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