The toothpaste phenomenon

When resources need to be extracted, the bottom is squeezed first. Despite the reduction of resources, the top part below the outlet bulges. I call this the toothpaste phenomenon.

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Squeeze the bottom first

When resources need to be extracted, there will be squeezes. Whenever there is a squeeze, it is always the people at the bottom that are pinched. When the Government reduces its budget in education, the management decides where to cut. It is always the teacher number that is reduced first. The management team often have to expand to “improve efficiency”. Unfortunately, such efficiency gains typically mean cutting corners. They mean each academic will have more students to teach. As a result, students have reduced attention from academics. The reality is: students do not just pay for the cuts. They also pay for the expansion of the management, which do not actually add to their education.


This phenomenon is seen everywhere


The same applies to hospitals, police and social work. Squeezing from the bottom gives opportunities to managements to change things. The same applies to companies. When the economy cools down, the workers will lose their jobs first, then the smaller companies will collapse. Well connected, big businesses are often the last to be in trouble. (AIG is a good example. It is too big to fail.) The big businesses will always be protected, because “they are there to help recovery”. This is because the Government is supported by big businesses.

The "toothpaste phenomenon"


I call this the toothpaste phenomenon: when resources need to be extracted from a system, one presses the bottom. Then resources will come out from the outlet. But the top part of the toothpaste, which is right below the outlet, will bulge out. It catches all the resources before they are released.

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