Physically adjust systems to improve efficiency

You are probably thinking that it would be great to have a way to make systems produce more of the good and less of the bad. Well, we have just the thing. By changing buffers, system design, and delays, we are able to produce systems that are more effective.

How?

Well, system buffers like inventory, time, and storage must be of an appropriate size to properly function. So, increasing the capacity of a buffer may stabilize a system. However, increasing this too much will make for a system that is inflexible. As an example, businesses buy minimal inventory because allowing for the occasional inventory shortage is cheaper than investing in costly storage of goods that might not be sold.

System design is an important factor. That is because a properly designed system allows for maximum efficiency and is less prone to fluctuation and has a better understanding of its own limitations and bottlenecks. For example, in the past, the only road between west and east Hungary goes through the capital city. The traffic congenstion it produced could not be fixed by the mere addition of traffic lights and the system required a complete redesign.

Finally, delays - the time it takes a system or its actors to notice and respond to change. This is another point of leverage. Each system has them but when a systems delays become longer term it struggles to respond to the short-term changes. As a result, delays should be proportionate to a system's rate of change.

As for global economics, the world is always striving for a more fast-paced economic growth, but the tangible reality of elements such as factories, technologies, prices, and ideas do not change at the same rate. Said in a different way, there is a delay. Slowing down growth and, therefore, giving technology and prices ample time to catch up would make for a much more efficient system.