AIM Framework glossary

Failure-Cost Identity

Canonical definition

The identity holding that the aggregate expenditure a community makes on Conflict is not the price of its justice, its security, or its dispute resolution, but the measured cost of its failure to hold its interfaces sub-critical. The identity rests on a derived rather than adopted baseline: no expenditure on Conflict corrects an Appetitive or Intrinsic deficit that existed before the Conflict began or that would have existed had it never begun, and none carries any party past the position held before the interface crossed the Critical Loop Gain, so the optimum expenditure is nil and every unit above nil measures the extent to which prevention did not occur. The measure counts Conflict and not friction, reads the system rather than the parties, and is a lower bound, because Intrinsic suppression is welfare never generated and Trauma is not denominated. The figure falls legitimately only where the incidence falls; a reduction achieved by declining to adjudicate conceals the cost rather than removing it.

Explanation

Money spent on courts, police, grievance procedures, arbitration and armies is usually counted as the price of having a civilised society. It is the opposite. None of it puts anyone ahead of where they were before the trouble started; at best it patches part of the damage the trouble caused. So the right benchmark is nothing at all, and every dollar above nothing is a receipt for a failure to stop the trouble earlier. You never learn what the prevented fight would have cost, and you do not need to, because the fights you did not prevent are already itemised, audited and published, just filed under the wrong heading.

Epistemic status

Framework-Specific Principle.

Derivation

Chapter 16, Section 16.18.

Related terms