INTERMEDIATE

Ratchet Effect

A term coined by economist Robert Higgs that describes the problem in governance that arises when government intervention increases during crises such as wars, natural disasters, or economic depressions.  After the crisis government meets resistance in reversing the intervention, creating a situation where government intervention rarely returns to pre-crisis levels, which lead to a constant ratcheting up effect in growth of government intervention over time.

 

Robert Higgs - Liberty and the Long Run Growth of Government

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For centuries, hierarchical models dominated human organizations. Kings, warlords, and emperors could rally groups--but also oppress them. Non-hierarchical forms of organization, though, are increasingly defining our lives. It's no secret how this shift has benefited out social lives, including dating, and it's becoming more commonplace even in the corporate world. But it has also now come even to organizations bent on domination rather than human flourishing, as the Islamic State shows. If even destructive groups rely on this form of entrepreneurial organization, then hierarchy's time could truly be coming to an end.
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