Arnold Kling on the differences between Big World and Small World. The Department of Homeland Security appeals to those of the Intelligent Design faith. It was created under the theory that the reason that government failed to prevent the 9/11 attacks was that it was not centralized enough. What we needed was a larger organization, with more missions and less ability to focus. As a hard-core Intelligent Design believer, Brad De Long believes that [DHS] could be effective with the right administrators. To skeptics (including many of its employees), [DHS] is a clusterfxxx no matter whom you put in charge. Generically, Intelligent Design theory supports bigger government. Because you believe that centralized solutions can work, you argue in favor of them. Every time you observe a phenomenon that strikes you as less than perfect - people without Health Insurance, people whose income fluctuates (Income Mobility), people who are overweight (ObesIty) - you ring a bell and yell "Market Failure!" You presume that every social flaw can and should be addressed by government action... Transactions within the small organization are based on informal rules and tacit understanding. Responsibility for the success of the organization is shared. Members often trust one another completely and feel intensely loyal to the organization. When a few key members articulate a need for change, the rest of the organization will go along... Large organizations exist, in spite of their awkwardness, because they create or exploit economies of scale.

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