Actuary Applies Systems Theory: Scale

In this video, I delve into the concept of scale and how it impacts systems, from small businesses to large corporations, and even to living organisms. I discuss how our linear thinking often leads us to misunderstand the effects of scale. For instance, doubling the size of something doesn't necessarily result in double the output or efficiency.
I talk about how as things grow, they become increasingly complex, often requiring a modular approach to manage this complexity. I also touch on the concept of 'economies of scale' and 'increasing returns to scale', and how these principles apply to various scenarios. For instance, a larger animal doesn't need double the calories of a smaller one, and a bigger city can offer more opportunities per capita.
However, I caution that there's often an optimal size for efficiency, and exceeding this can lead to fragility. For example, bigger animals are more vulnerable to extinction, and larger companies may struggle to adapt to changes.
By understanding these principles, we can better navigate and take advantage of the world around us.
🍿 WATCH NEXT:
1. • The 7 benefits of a ca...
2. • How to get a career in...
3. • Why I moved from Hedge...
MY OTHER SOCIALS:
🐦 Twitter - / joshpalmer862
📸 Instagram - / joshpalmer862
📱 TikTok - / jlgpalmer
👨‍💻 Linkedin - / jlgpalmer
🎥 Facebook - / jlgpalmer
WHO AM I?
Hey everyone, my name is Josh and I’m an Investment Actuary-turned-KZbinr. Through my videos here on this channel I share my career experience and also general self-improvement experiments based on my experience. I hope you enjoy!