Leverage Arbitrage Divergence: How Fast Actors Outpace Slow Systems

This article explores the growing gap between the speed at which actors with different types of leverage (labor, capital, code) can change the world. Tech companies, wielding code leverage, rapidly alter societal norms, while slower-moving institutions struggle to adapt. This 'leverage arbitrage' leads to the over-exploitation of societal commons—democratic norms, social trust—and ultimately threatens civilizational stability. The solution, the author argues, lies in 'leverage literacy,' fostering organizations and decision-making processes that account for the diverse speeds of power dynamics to create a sustainable future.