Any human with above room temperature IQ can design a utopia. The reason our current system isn’t a utopia is that it wasn’t designed by humans. Just as you can look at an arid terrain and determine what shape a river will one day take by assuming water will obey gravity, so you can look at a civilization and determine what shape its institutions will one day take by assuming people will obey incentives.
But that means that just as the shapes of rivers are not designed for beauty or navigation, but rather an artifact of randomly determined terrain, so institutions will not be designed for prosperity or justice, but rather an artifact of randomly determined initial conditions.
Just as people can level terrain and build canals, so people can alter the incentive landscape in order to build better institutions. But they can only do so when they are incentivized to do so, which is not always. As a result, some pretty wild tributaries and rapids form in some very strange places.
Scott Alexander

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