The Crisis of Social Stability: How the Collapse of Principles Devours Collective Welfare

In the era of the Internet, we have witnessed exponential technological growth. But a paradox has also emerged: productivity is soaring, yet society is declining. Why?

Some might say it’s an economic issue, but the true root lies in something deeper—the disintegration of the principle of consensus.

Underlying Algorithms Determine the Height of Civilization

Imagine, what is the most important asset in life? Not a house, not stocks, but a set of “principle systems” that guide decision-making. This system is like code, determining our behavioral preferences, value rankings, and even what costs we are willing to pay in extreme games.

Throughout human history, every society has needed a set of informal institutions to constrain individual behavior—that’s why religion and culture have evolved similar core norms worldwide. Regardless of geographical differences, all societies share the same needs: reducing transaction costs and achieving social coordination.

The classic ethical teachings—“Love thy neighbor,” “Karma”—from a game theory perspective, are actually designed as incentive mechanisms. When individuals adopt a strategy of “giving more than taking,” the cost of helping is often far less than the benefits to the recipient, creating a positive externality. This is the essence of reciprocal altruism: creating a non-zero-sum, win-win situation.

But now? These principles are collapsing.

The Economic Definition of Good and Evil

We need to redefine good and evil.

From an economic perspective, good is behavior that maximizes social utility (generates positive externalities), and evil is behavior that harms the overall system (generates negative externalities). Simply put, good benefits the majority, evil benefits a few at the expense of society.

The inefficiencies caused by personal greed—these deadweight losses—are skyrocketing. When trust erodes, moderation disappears, and courage becomes a luxury, society pays a heavy price. Good character is not just a moral label; it is an asset that can maximize collective welfare.

This is not just an ethical issue but a systemic efficiency problem.

The Accelerating Devaluation of Social Capital

We are in a metaphorical “downward trajectory.” The hallmark is: the consensus on good and evil is vanishing.

Once, social contracts were based on an implicit consensus—people believed in a behavior pattern that Pareto-improved outcomes, benefiting most without harming anyone. But now, dominant principles have been reduced to naked self-interest maximization: absolute plunder of money and power.

Look at our cultural products—our lack of morally compelling role models is evident. When malicious behaviors are packaged as shortcuts to success, and young people grow up without proper incentive templates, issues like drugs, violence, suicide, and widening opportunity gaps follow. These are not isolated phenomena but symptoms of the collapse of social principles, and also their causes.

Ironically, many have abandoned religious superstitions but have also mistakenly dismissed beneficial social norms embedded within them. This has left a institutional vacuum—no new incentive frameworks to fill the gap.

Technology is a Lever, Capable of Amplifying Everything

A key insight: technology is just a tool; it can amplify both benefits and destruction.

History teaches us clearly—technological progress itself does not eliminate conflict. No gunpowder, no electricity, and no internet. The real variable is not the technology itself but the principles followed by those who use it.

AI, blockchain, biotechnology… these tools are neutral. The critical question is: what kind of incentive mechanisms do we use to guide their application? To benefit the many or to plunder the many?

The Window for Rebuilding Is Still Open

The good news is: the solution is in our hands.

We possess the most powerful toolbox in history. As long as we can reconstruct a healthy set of principles centered on mutual benefit and win-win cooperation, we have the capacity to solve all systemic crises—from wealth disparity to the collapse of social trust.

This does not require going back to the past, nor does it require religion. What we need is a new consensus framework—a system design that incentivizes people to pursue collective optimality rather than local optimality.

When everyone realizes they are a node in the entire system, and individual benefits are linked to systemic welfare, principles will naturally return. Technology can help us achieve this—but only if we have the courage to redefine what success and failure truly mean.

This dialogue has only just begun.