How Economic Systems Incentivize Predatory Behavior Over Cooperation
The Seven Dials of the Superorganism: Why Good People Act Badly
The modern economic system functions as a superorganism that systematically rewards psychopathic, instrumental behavior while penalizing pro-social cooperation. This is not a failure of individual morality, but a consequence of seven boundary conditions, or dials, that have been flipped from our ancestral settings. By shifting from small-scale, repeated interactions to a globalized, anonymous, and symbolic economy, we have created a system where the winning strategy is to extract, hide, and externalize costs. Understanding these dials provides a strategic advantage: it reveals why conventional wisdom fails and where we must focus to build resilience. For those operating within this system, the goal is not to fix the global superorganism, which is currently locked, but to reclaim agency at the human scale, where we can still rewrite the rules of our own immediate environments.
The Mechanics of the Game
In his recent conversation with systems theorist Greg Elliott, Nate Hagens explores why our institutions have become increasingly predatory. The core insight is that human behavior is largely a response to the rules of the game. For 300,000 years, our survival depended on cooperation; today, the system rewards those who can detach their actions from consequences.
The game theory winning strategy of tit for tat only works when there is a next round, because helping others today pays off. Because they are probably going to help you or at least they might help you in the future. But what if the dial turned off the repeated iteration setting?
-- Nate Hagens
When interactions are one-off, as they are in most modern economic transactions, the psychopathic strategy of taking maximum value without regard for the other party becomes the most efficient path. This is not necessarily a choice driven by malice; it is an adaptation to a system that provides a reputational mulligan through cheap energy and high mobility.
The Hidden Cost of Anonymity and Abstraction
Systems thinking reveals that our current crisis of psychopathic institutions is fueled by two primary dynamics: the removal of visibility and the delay of feedback.
When we interact with entities shielded by shell companies or global supply chains, the harm we cause becomes anonymous. Because we cannot see the river poisoned or the worker exploited thousands of miles away, we cannot effectively punish the behavior. This creates a competitive disadvantage for ethical actors. Corporations that externalize costs outcompete those that do not, forcing a race to the bottom where the most predatory firms win.
A bill that arrives late enough arrives to somebody else. And when feedback is delayed like this, short time horizons plus a hunger for status plus low empathy, that all becomes extremely adaptive and we are seeing this in real time.
-- Nate Hagens
This delayed feedback, the bill that arrives decades later, is the engine of our current environmental and debt crises. While the system encourages us to prioritize the present, the physical reality of the planet is beginning to force the payment of these long-deferred bills.
The Lock on the System
The most sobering insight from Hagens and Elliott is the lock on the sixth dial: the ability to buy the rules. In tribal societies, rough equality of force prevented any single individual from rewriting the game board. Today, sufficient concentration of wealth allows winners to not only play the game but to purchase the infrastructure, regulations, and information that define it.
Most solutions, such as increased transparency or better accounting, require someone to enforce them. If the people who own the rules are the ones benefiting from the status quo, the system is effectively immune to top-down reform. This is why punisher fatigue is so prevalent; the people trying to hold the system accountable do not own the jail.
Key Action Items
- Deepen roots in your existing community (Immediate): Stay put on purpose. Prioritize repeated interactions with the same local mechanics, farmers, and neighbors. This restores the next round incentive that discourages predatory behavior.
- Shrink your supply chain (Next 6-12 months): Shift spending to local providers where you know the name of the person responsible for the product. This creates a direct attribution loop for the goods you consume.
- Force transparency in your local sphere (Ongoing): Whether it is a nonprofit board, a co-op, or a town council, demand open books. Transparency is most effective at the scale where you can actually influence the rules.
- Measure reality, not symbols (Immediate): Track physical metrics, such as kilowatt hours, soil health, or bushels, alongside financial ones. This serves as a visceral reminder of what your money actually represents in the physical world.
- Build structural mutual dependence (12-18 months): Invest in tools, maker spaces, or childcare co-ops that require you to rely on others and others to rely on you. This creates a tribe that is resilient to the volatility of the larger superorganism.
- Audit your exit costs (Next 6 months): Reduce debt and simplify your lifestyle to decrease your dependence on institutions that view you as a replaceable headcount. The less you need from the system, the more leverage you regain in your own decision-making.