What Now?
We've Been Building Billion-Dollar Systems That Make the Problem Worse
An outline for your next post
Opening Hook
Subtitle: How mistrust-by-design creates the crises it claims to solve
Start with a specific, visceral example of a system failing expensively:
- TSA security theater: $8+ billion annually, negligible security improvement, massive inconvenience
- The 95% failure rate in their own tests
- Meanwhile, the actual solution (reinforced cockpit doors) cost a fraction and actually worked
- This isn't incompetence—it's what happens when you design from mistrust
The pattern: We keep building expensive control systems that:
- Don't solve the original problem
- Create new problems
- Demand even more expensive "solutions"
- Leave everyone worse off
This is the doom loop of mistrust-by-design.
Part 1: The Vicious Cycle
How mistrust creates the problems it tries to prevent
Education's Spiral
- Started with: concern that some students weren't learning
- Response: standardized testing, accountability metrics, teach-to-test curricula
- Cost: billions in testing infrastructure, lost classroom time, narrowed curriculum
- Result: students hate learning more, teachers quit in record numbers, creativity plummets
- Next response: more testing, more accountability, more controls
- The actual problem (engagement, meaning, agency) gets worse with each "solution"
The Surveillance Workplace
- Started with: worry about productivity and time theft
- Response: monitoring software, keystroke logging, activity tracking, bathroom break metrics
- Cost: billions in surveillance tech, massive management overhead, legal risks
- Result: employee engagement hits all-time lows, quiet quitting, actual productivity drops
- Next response: AI surveillance, predictive analytics, even tighter controls
- The actual problem (trust, autonomy, meaning) deteriorates further
Healthcare's Permission Labyrinth
- Started with: legitimate safety concerns and liability fears
- Response: prior authorizations, step therapy, formulary restrictions, documentation requirements
- Cost: physicians spend 2+ hours on paperwork per hour of patient care, billions in administrative overhead
- Result: doctors burned out, patients getting sicker waiting for approvals, crucial time lost
- Next response: more gatekeeping, more documentation, more controls
- The actual problem (patient care) becomes almost incidental
The pattern across all three:
- Control costs more than trust
- Control doesn't solve the underlying problem
- Control often makes the underlying problem worse
- So we add more control
Part 2: The Hidden Costs Nobody Counts
What we lose when we design from mistrust
The Innovation Tax
- Every permission requirement is an innovation killed
- Case study: Compare pharmaceutical innovation (heavily regulated, slow, expensive) to software innovation (relatively open, fast, cheap)
- Not arguing against all pharma regulation, but noting the cost
- How many cures don't exist because the system assumes bad actors?
- The genius trapped behind "not your job" boundaries
The Circumvention Economy
- People spend enormous energy gaming control systems
- Students learning to cheat rather than learning the material
- Employees appearing busy rather than being productive
- Patients learning to "speak insurance" rather than describing symptoms
- Massive waste of human creativity applied to defeating systems instead of improving them
The Disconnection Cost
- When systems treat people as potential criminals, people disconnect
- "Learned helplessness" becomes rational response to learned powerlessness
- The civic engagement we desperately need dies under surveillance
- Case study: Compare Wikipedia editor engagement vs. traditional encyclopedia contributors
- Trust creates belonging; mistrust creates alienation
The Brittle System Problem
- Heavily controlled systems can't adapt
- They break catastrophically instead of bending
- Case study: Blockbuster's inability to adapt vs. Netflix's emergence
- Case study: Encyclopedia Britannica vs. Wikipedia's resilience
- Centralized control = single points of failure
- Distributed trust = antifragile systems
Part 3: Why We Keep Doing This
The forces that perpetuate mistrust-by-design
The Liability Trap
- One lawsuit creates policy for thousands
- We design for the worst case, punishing everyone for one person's action
- The legal system rewards defensive design over effective design
- Insurance requirements that mandate mistrust
The Professionalization Racket
- Expert gatekeeping protects incumbents
- Credentials as barrier to entry, not guarantee of quality
- Case study: How many great teachers can't teach because they lack the "right" degree?
- Case study: Occupational licensing that protects profits, not public
The Quantification Delusion
- "If you can't measure it, you can't manage it" leads to measuring the wrong things
- What's easily measured (test scores, keystrokes, time-on-task) isn't what matters
- What matters (learning, innovation, care) becomes secondary
- Goodhart's Law on steroids: when a measure becomes a target, it ceases to be a good measure
The Security Theater Business Model
- Entire industries profit from fear and mistrust
- Surveillance capitalism needs us to mistrust each other
- The consulting complex that sells "solutions" to trust problems
- Political incentives that reward being "tough" on X
The Ratchet Effect
- Controls almost never get removed
- Each crisis adds a layer
- We rarely ask: "Did that control actually work?"
- We just add more when problems persist
- Organizations develop scar tissue that never heals
Part 4: What the Billion Dollars Could Buy Instead
The opportunity cost of mistrust
Real Examples of Trust-Based Alternatives
Morning Star (self-management)
- No managers, no job titles, workers negotiate commitments
- Tomato processing company, not a tech startup
- More profitable than competitors, lower turnover
- What they DON'T spend money on: management hierarchy, HR bureaucracy, performance reviews
- What they DO spend money on: training, equipment, employee development
Buurtzorg (neighborhood nursing)
- Netherlands nursing organization, eliminated management layers
- Teams of 10-12 nurses self-organize patient care
- 50% less administrative overhead than traditional nursing
- Better patient outcomes, higher nurse satisfaction, lower costs
- What they saved: billions in management costs
- What they gained: better care, happier nurses
Semco (radical workplace democracy)
- Employees set own salaries, choose managers, define work hours
- Revenue grew from $4M to $212M with this model
- Skeptics said it would fail immediately
- It's been running for 40+ years
- What they saved: oversight bureaucracy, turnover costs, engagement consultants
- What they gained: innovation, loyalty, profitability
The Math Nobody Does
If we took just the surveillance and control budgets from:
- Educational testing and accountability systems
- Workplace monitoring and management
- Healthcare prior authorization and documentation
- TSA and security theater
- Professional licensing boards
- And redirected it to trust-based alternatives...
What could we build?
- Teacher-directed schools with real resources
- Worker-owned cooperatives
- Community health clinics with actual care time
- Transportation systems designed for flow, not control
- Apprenticeship programs instead of credential barriers
The tragic part: We already know these work. We have the examples. We're just afraid to try them at scale.
Part 5: The Breaking Point
Why this matters more now than ever
The Legitimacy Crisis
- Institutions losing trust precisely because their design breaks trust
- Can't rebuild trust with PR campaigns
- Have to actually redesign systems
- Current trajectory: more control → less trust → demands for change → more control
- This ends badly
The AI Amplification Risk
- Every control system we've built becomes supercharged with AI
- Surveillance becomes perfect, inescapable
- But the underlying problem (mistrust) gets exponentially worse
- We're automating dystopia unless we change direction
- Alternative: AI could enable trust-based systems to scale
The Generational Divide
- Younger generations recognize the systems are broken
- They're opting out: quiet quitting, FIRE movement, alternative lifestyles
- The social contract is already broken
- Choice: redesign from trust, or watch systems collapse from distrust
The Geopolitical Dimension
- Authoritarian systems are doubling down on control
- Democratic systems adding surveillance and restrictions
- The irony: we're becoming what we claim to oppose
- Competitive advantage goes to societies that unlock human potential
- That requires trust-based design
Part 6: The Way Out
How to stop building systems that make things worse
Start With One Question
Before building any new system or fixing an old one, ask: "What are we assuming people will do wrong, and what if we're wrong about that?"
The Audit You Need
Look at your three most expensive control systems:
- What problem were they supposed to solve?
- Did they solve it?
- What new problems did they create?
- What would happen if you removed them?
- What would you do with the money instead?
The Small Bets Strategy
- You don't have to transform everything at once
- Find one expensive control system
- Run an experiment with trust-based alternative
- Measure what actually matters (not what's easy to measure)
- Learn, iterate, expand
The Pattern Recognition Skill
- Train yourself to see mistrust-by-design
- Every security gate, permission slip, surveillance camera
- Ask: "Is this solving a real problem or performing security theater?"
- Ask: "What would a trust-based alternative look like?"
- Collect examples of trust-based systems that work
The Coalition Building
- You can't do this alone
- Find others who see the pattern
- Share stories of successful trust-based alternatives
- Build political will for redesign
- Make the economic case: trust is cheaper
Closing: The Choice
We're at an inflection point. We can:
Option A: Keep building billion-dollar systems that make problems worse
- More surveillance, more control, more alienation
- Higher costs, lower trust, worse outcomes
- Eventually, system collapse or authoritarianism
Option B: Start designing from trust
- Cheaper, more effective, more humane
- Unlocks innovation, builds community, creates resilience
- Requires courage to flip our assumptions
The evidence is already in. Trust-based systems work. They're more efficient, more adaptive, more humane. We're just too scared to build them at scale.
But the cost of mistrust is becoming unbearable. And the systems we've built are starting to fail catastrophically.
The question isn't whether we CAN design from trust. The question is whether we'll do it before the mistrust-based systems collapse entirely.
Potential Case Studies to Research/Add:
- Valve Software (no managers, flat hierarchy) - gaming company
- Gore-Tex (lattice organization) - manufacturing
- Handelsbanken (no budgets, branch autonomy) - banking
- Finnish education system (high trust, low testing, excellent outcomes)
- Mondragon (worker cooperative, 80,000+ employees)
- Patagonia (trust-based retail, environmental mission)
- REI (cooperative model)
New Insights to Develop:
- The Control Paradox: The more you tighten control, the more it slips away
- The Accountability Illusion: Heavy documentation doesn't create accountability, it creates CYA behavior
- The Innovation Ceiling: Control systems cap innovation at "approved" level
- The Trust Dividend: Organizations that design from trust get exponential returns
- The Surveillance Spiral: Each layer of surveillance demands more surveillance to monitor the monitors
This outline gives you a structure as substantive as the DfT post, with a sharper critical edge. It names the villain (mistrust-by-design), shows the damage (with specific costs and examples), and offers the alternative (trust-based systems with proof they work).
The tone would be more urgent and critical than the DfT post—less "here's an interesting pattern" and more "we're actively breaking everything and here's how to stop."