[From Bill Powers (920601.0930)]
Rick Marken (920531) --
Clever thought about higher levels increasing loop gain by increasing k.f,
the external feedback factor. In manufacutring, k.f is called productivity.
Assuming that the perceptual sensitivity remains the same (no dark glasses)
and that the reference level doesn't change, the result of an increase in
k.f should be a decrease in effort, shouldn't it? If the feedback effect is
increased, the same output effort will produce too much input. So the
output drops.
This shows that something is wrong in our economy. American productivity is
the highest in the world (although it's not increasing the fastest). So the
amount of goods produced per unit labor is higher than it's ever been. But
now we have to have two adults working full time per family to bring home
enough money to maintain a standard of living that everyone agrees has
dropped. It looks as if something is draining the product of our labors
away before we can get it. The consumer's k.f (input of goods per unit
effort) has become SMALLER in spite of an increase in the producer's k.f
(revenue per unit wage paid). There's a glitch in the system somewhere.
Best,
Bill P.