Planned fallibility is one of those urban myths and conspiracy theories that's almost true. It's in the realms of things like NLP and hypnosis where it's real, but it's not as interesting as it's made out to be. And yet the rumors about planned fallibility do speak to a very real ugliness in the modern era.
00:00:30.900And yet the rumors about planned fallibility do speak to a very real ugliness in the modern era.
00:00:39.320First, let's start with planned fallibility itself.
00:00:43.940Planned fallibility is the idea, the conspiracy, that manufacturers intentionally make defective goods
00:00:54.260so that you have to come back to the store and buy a replacement.
00:00:57.840Now, on the one hand, they certainly have the ability to figure out when their products are going to fail with some statistical relevance.
00:01:08.940Any time you buy a computer, for instance, you can buy warranty insurance on it for $300 that in the next three years, if it breaks, they'll replace it for you.
00:01:19.340And yet, they offer that insurance, don't they?
00:01:25.240So you can certainly approach it as a company trying to scam you and nickel and dime you and so on and so forth.
00:01:35.280But what you're getting down to here is it's not a conspiracy, it's not, it's just a failure of the marketplace.
00:01:46.180And the best example of planned fallibility is the light bulb.
00:01:53.080Now, up until the invention of modern halogen light bulbs, your standard light bulb, a filament light bulb, would last about six months to a year.
00:02:03.900And you pay about, let's say, $2 for one of those.
00:02:09.700Now, the thing is that we've had technology to make light bulbs that never burn out for over a century.
00:02:18.200Thing is that those light bulbs cost about $5.
00:02:21.440And so even though this light bulb never burns out, and the $2 light bulb burns out every single year,
00:02:32.600people just don't seem to be willing to pay $5 for a light bulb.
00:02:38.360And if you think about the way we use light bulbs, we tend to move from apartment to apartment.
00:02:43.800Light bulbs are known to break if the lamp gets knocked off or something like that.
00:02:48.860So you can understand why consumers are going to go cheap and buy the $2 light bulb.
00:02:55.420It's an unexpected expense at the end of the month when a light bulb burns out.
00:03:00.280You don't want to invest in something high quality.
00:03:03.620But a consequence of that is that we actually spend far more money on light bulbs than is necessary.
00:03:09.160Because it's just not profitable to manufacture the good quality ones.
00:03:15.180And so there you have planned fallibility in a nutshell.
00:03:17.700And why it's just an inevitable market failure, that's going to happen in any capitalist system.
00:03:24.240And as for the state-run systems, the market failures in those are far, far worse.
00:03:33.080Now that said, let me tell you a story about coffee makers.
00:03:36.260Over a two-year period, I went through three coffee makers.
00:03:44.400One of them broke because the water inlet on the back water reservoir didn't have a filter.
00:03:52.260And so eventually, through normal use, a coffee ground fell into the back, fell down.
00:04:01.020And the way it prevents water from going back up towards the back is a simple ball valve.
00:04:11.680Basically, you've got this tiny little ball that, you know, when it goes up, it blocks the line.
00:04:17.600When it's going down, the water flows normally.
00:04:20.580And that got screwed up by a coffee ground.
00:04:22.680So I disassembled it, ripped it all apart.
00:04:26.600And it wasn't designed to be ripped apart, of course.
00:04:28.580It was all glued together, not screwed together.