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It is strictly reductive. Modeling the dynamics of millions to billion scale population on those of a a 2-30 scale group is dumb. Like trying to port a car autopilot to an aircraft carrier.
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We can’t help but think in local terms The alternative is to simply admit we don’t understand complex systems but that won’t get you elected
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Extrapolations of local-isms --> national-isms is symptomatic of trying to preserve legible cultural tropes by bulldozing through the nuances of its origins, warts and all rather than confronting them
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Yes, even thinking of idealized families not everything scales up, but it's not utter nonsense, too. Many, not all, Americans seem to be triggered for socialism as soon as any community (one big family) aspect arises. But even Trump tried to get away with "we're one" lately...
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The reverse is worse. For example, any and all public spending is "an investment in the future". You may not need to balance the budget, but borrowing should be for items with long term ROI rather than vote buying.
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Of course scale is important, but I think this type of thinking is more in need. Domain dependent knowledge is a much bigger problem