Meta's Llama 3.1 can recall 42 percent of the first Harry Potter book (understandingai.org)

Sun Feb 15 2026

Capitalism is allergic to second-order cybernetics.

First-order systems drive outcomes. "Did it make money?" "Did it increase engagement?" "Did it scale?" These are tight, local feedback loops. They work because they close quickly and map directly to incentives. But they also hide a deeper danger: they optimize without questioning what optimization does to the world that contains it.

Second-order cybernetics reason about systems. It doesn’t ask, "Did I succeed?" It asks, "What does it mean to define success this way?" "Is the goal worthy?"

That’s where capital breaks.

Capitalism is not simply incapable of reflection. In fact, it's structured to ignore it. It has no native interest in what emerges from its aggregated behaviors unless those emergent properties threaten the throughput of capital itself. It isn't designed to ask, "What kind of society results from a thousand locally rational decisions?" It asks, "Is this change going to make more or less money?"

It's like driving by watching only the fuel gauge. Not speed, not trajectory, or whether the destination is the right one. Just how efficiently you’re burning gas. The system is blind to everything but its goal. What looks like success in the short term can be, and often is, a long-term act of self-destruction.

Take copyright. Every individual rule, term length, exclusivity, royalty, can be justified. Each sounds fair on its own. But collectively, they produce extreme wealth concentration, barriers to creative participation, and a cultural hellscape. Not because anyone intended that, but because the emergent structure rewards enclosure over openness, hoarding over sharing, monopoly over multiplicity.

That’s not a bug. That's what systems do when you optimize only at the first-order level. And because capital evaluates systems solely by their extractive capacity, it treats this emergent behavior not as misalignment but as a feature. It canonizes the consequences.

A second-order system would account for the result by asking, "Is this the kind of world we want to live in?" It would recognize that wealth generated without regard to distribution warps everything it touches: art, technology, ecology, and relationships.

Capitalism, as it currently exists, is not wise. It does not grow in understanding. It does not self-correct toward justice. It self-replicates. Cleverly, efficiently, with brutal resilience. It's emergently misaligned and no one is powerful enough to stop it.