The Genealogy of Collapse
Two fractures from one source — and the junction where they produced the paperclip civilization
I. Two Collapses
The standard narrative of Western decline tells one story: science killed God, meaning collapsed, utility filled the void, and now we optimize metrics without knowing what anything is for.
This is half the story. The Original Sin of History traces it in detail — how Christianity bundled metaphysics with physics, how science falsified the physics, how the metaphysics collapsed as collateral damage, how utility rushed in to fill the vacuum.
But there's a second collapse, running on a parallel track from the same source, doing different damage. It doesn't get told as a single story because it's scattered across disciplines — medieval theology, political philosophy, economics — that don't talk to each other.
The two collapses:
Vertical collapse: The destruction of telos — shared purpose, meaning, what life is for. Galileo → Newton → Darwin → void → utility. The civilization lost its why.
Horizontal collapse: The dissolution of relational ontology — the bonds between people, the reality of groups, the connective tissue of society. Ockham → Hobbes → Locke → Marginal Revolution → homo economicus. The civilization lost its we.
Neither alone is fatal. Lose your purpose but keep your bonds, and you get a purposeless but cohesive society — Japan, perhaps, which imported Western metrics without fully dissolving its relational fabric. Lose your bonds but keep your purpose, and you get atomized individuals who still share a direction — early American individualism, deeply Christian, fiercely independent but pointed at something.
Lose both, and you get atomized individuals optimizing individual utility metrics with no shared purpose and no relational substrate to coordinate a correction. That's the modern West. That's the paperclip civilization.
This essay traces the second collapse and shows where the two meet.
II. The Vertical Collapse (Summary)
The full argument is in The Original Sin of History. The short version:
Christianity committed the Bundle Error — fusing meaning (what life is for) with physics (how the cosmos works) into a single load-bearing structure. Geocentrism wasn't decoration; it was architecture. The moral order mapped onto the cosmic order. Heaven above, Hell below, humanity at the center of God's attention.
Science falsified the physics. Copernicus, Galileo, Lyell, Darwin — each blow was survivable in isolation, but the Council of Trent had locked the interpretation. The bundle shattered. When the physics went, the metaphysics went with it.
The void needed filling. Bentham's utility calculus won because it was countable — low bandwidth, no metaphysical commitments, scales infinitely. The bureaucracy can count. It cannot do wisdom. So we got what bureaucracies can do.
Result: a civilization that optimizes metrics (GDP, QALYs, engagement, safety) without reference to what any of it is for. The paperclip maximizer, running on human substrate.
But this only explains why the purpose was lost. It doesn't explain why nobody could coordinate a replacement. For that, you need the second collapse.
III. The Horizontal Collapse
Ockham's Razor Cut Deeper Than You Think
Before the 14th century, Scholastic realism — the philosophy of Thomas Aquinas and his tradition — held that universals were real. "Humanity" wasn't just a word for a collection of individuals; it was a shared essence that connected people within a metaphysical hierarchy. Relations were ontologically real. The community had a status independent of its members.
William of Ockham shattered this.
The nominalist revolution (from nomina — names) declared that universals were merely labels. Mental fictions. Convenient groupings of distinct, separate entities. Only particular things exist. "Humanity" is a word you use when you're too lazy to list seven billion names.
The motive was theological, not secular. If universals existed as real entities, they would constrain God's power — God would be bound by the "nature" of humanity. To preserve God's absolute freedom (potentia Dei absoluta), Ockham argued that God creates only singular, radically distinct individuals. Each thing is a unique act of divine will, connected to other things only by God's arbitrary decision.
The ontological consequence was devastating: the metaphysical connective tissue between beings was dissolved. Reality was redefined as a collection of isolated atoms, connected only by external force — first God's will, later the state, later the market.
This was the horizontal fracture. Not "God is dead" but "we is dead." The relational fabric that made groups real — not just aggregations of individuals — was declared fictitious. What remained were atoms and whatever held them in proximity.
From Theology to Political Theory
The nominalist settlement migrated into politics through three steps, each tightening the noose.
The Reformation operationalized Ockham. Luther relocated salvation to the individual conscience — no mediation by the Church (a collective universal), no communion of saints, no shared spiritual substance. The individual became the primary spiritual unit, sealed off from the collective. The "buffered self" replaced the "porous self" of the medieval world.
Hobbes secularized Ockham. His "State of Nature" is nominalist theology without God: radically separate individuals, driven by appetite, connected only by artificial contract. Society isn't organic; it's engineered. The Leviathan — the state — is an artificial device that holds the atoms together. Remove it and they scatter into war.
Locke softened the picture but kept the ontology. Individuals possess rights prior to society. The individual is the pre-political unit; society is merely a tool for protecting pre-existing individual interests. The self comes first; the group is instrumental.
This genealogy matters because it reveals that ontological individualism is not a discovery of natural science. It's a secularized theological position — the residue of a 14th-century argument about God's omnipotence, laundered through political philosophy until it felt like common sense.
From Political Theory to Economics
The final formalization came with the Marginal Revolution of the 1870s. Classical political economy (Smith, Ricardo, Marx) was concerned with classes — landlords, capitalists, laborers — and with production as a social process. Adam Smith's "butcher, brewer, and baker" operated within a moral philosophy that presupposed sympathy and social standing.
Jevons, Menger, and Walras changed the unit of analysis. Value was no longer intrinsic to the labor process (a social phenomenon) but derived from the subjective utility of the individual consumer. The atomized calculator was born. Preferences were treated as "given" and exogenous — uninfluenced by the system the individual was embedded in.
Carl Menger, founder of the Austrian School, explicitly championed "atomism": complex social phenomena must be reduced to their simplest elements — individual actors. Max Weber formalized this as methodological individualism: social phenomena must be explained as the result of individual actions motivated by intentional states. Hayek and Mises radicalized it further: only individuals act; collectives like "markets" or "states" are mere metaphors.
The horizontal collapse was complete. From Ockham to Menger in five centuries: universals are fictions → souls are individual → society is contract → value is subjective → only atoms are real.
The irony is mathematical. Even within the individualist paradigm, it doesn't work. The Sonnenschein-Debreu-Mantel theorem proves that individual rationality does not aggregate into collective rationality — even if every individual satisfies the axioms of utility maximization, the aggregate demand curve of the economy need not. The collective can behave "irrationally" with perfectly "rational" atoms. To make their models work, economists invented the "Representative Agent" — treating the whole economy as one person. This is a rejection of individualism in practice, collapsing diversity into a fiction to force mathematical stability.
Ockham would recognize the move. Another universal, smuggled back in under a different name.
IV. The Junction: Bentham
The two collapses ran on parallel tracks for centuries. They met in one person.
Jeremy Bentham (1748–1832) is usually remembered for the utility calculus — "the greatest happiness for the greatest number." This undersells him catastrophically. Bentham was a full-stack civilizational engineer. He built a complete system: ontology, language theory, diagnostics, mechanism design, constitutional specification. He sent constitutional codes to Portugal, Greece, and Latin America. He designed buildings, oaths of office, uniform colors, polling station architecture.
He is the closest historical parallel to what this framework attempts. And his failure mode is the most important warning in the history of ideas.
Bentham's system was the junction where both collapses became one:
From the vertical collapse, Bentham inherited the void. God was dead (or irrelevant). Telos was gone. What remained? Sensation. Pleasure and pain — the only things Bentham's materialist monism allowed to be real. His utility calculus filled the void left by the death of purpose with the only metric a godless materialism could measure.
From the horizontal collapse, Bentham inherited the atoms. His Theory of Fictions — his most underappreciated contribution — was Ockham's razor applied to everything. Every abstract noun that couldn't be reduced to individual physical sensation was a "fiction" to be dissolved through "paraphrasis." Rights? Fiction. Community? Fiction. Justice? Fiction — unless reducible to individual pleasure/pain calculations.
The combination was lethal: dissolve all relational bonds (horizontal) + replace all purpose with sensation-counting (vertical) = utility maximization by atomized individuals.
Bentham's Theory of Fictions was the right tool (dissolve broken abstractions that mask predation — his "Sinister Interest" analysis is brilliant) applied with the wrong ontology (dissolve all abstractions, including the ones that encode real coordination wisdom). He burned out the meaning along with the bullshit. His language hygiene was too aggressive — the same error as a surgeon who removes the tumor and the organ.
His mechanism design (the Panopticon, radical transparency, "Minimization of Confidence") optimized for the wrong objective. His Constitutional Code was the source code for the modern technocratic state — the bureaucracy that can count but cannot do wisdom.
Bentham, competently executing vertically integrated civilizational engineering with the wrong ontology, produced the paperclip maximizer.
V. The Escalator
Bentham was the junction. What followed was an escalator — each step following logically from the previous, no internal stopping mechanism.
Bentham (1789): Utility calculus. Maximize pleasure, minimize pain, sum across individuals. The greatest good for the greatest number.
The Marginal Revolution (1870s): Utility becomes subjective and individual. No interpersonal comparison possible. The "greatest good" fractures into individual optimization.
Arrow-Debreu (1954): General equilibrium. Prove mathematically that markets clear optimally — under assumptions so restrictive they describe no economy that has ever existed. But the math is beautiful, and beauty substitutes for truth in disciplines without empirical feedback.
Cost-Benefit Analysis (1960s): Utility becomes policy tool. Every government decision evaluated by aggregating individual "willingness to pay." What can't be priced doesn't exist. Meaning, cohesion, trust, intergenerational capital — invisible to the ledger.
QALYs (1970s): Utility becomes health metric. Quality-Adjusted Life Years. Maximize duration × comfort. What life is for drops out of the equation — the metric measures existence, not purpose.
Effective Altruism (2000s): Utility becomes moral movement. Optimize QALYs per dollar. The most sophisticated Benthamism yet — rigorous arithmetic on the wrong variable. Scope insensitivity (humans can't intuitively value 200,000 birds differently from 2,000) is treated as a bug to be corrected by calculation, rather than evidence that individual utility aggregation is the wrong unit of analysis.
SBF (2022): Utility becomes fraud justification. "Expected value calculation" as grounds for risking other people's money. The logic is impeccable given the premises. If utility is the only real thing, and your expected value calculation says the bet is positive, then fiduciary duty and trust and the relational fabric of financial markets are just — what was Bentham's word? — fictions.
The causal chain: Ockham (universals are fictions) → Bentham (all abstractions are fictions except pleasure/pain) → Marginal Revolution (utility is subjective and individual) → Arrow-Debreu (markets optimize individual utility) → QALYs (life reduced to utility-years) → EA (morality reduced to utility-per-dollar) → SBF (trust reduced to expected value calculation).
Every step was locally rational. Every step followed from the previous. The escalator has no internal brake because each escalation is more logically consistent than the last. The only thing that can stop it is contact with a reality the framework can't model — which is exactly what happened when SBF's exchange collapsed and actual humans lost actual money that was actually theirs.
Reality is the only peer reviewer that can't be Goodharted.
VI. Why Both Were Necessary
The vertical collapse alone — loss of purpose — is survivable. Many civilizations have lost their founding mythos and found replacements. The vertical collapse produces the void, but if the relational fabric is intact, the collective can coordinate a response. A purposeless but cohesive group can search for new purpose together.
The horizontal collapse alone — dissolution of bonds — is also survivable. Atomized individuals who still share a telos can coordinate through that shared purpose even without thick relational ontology. Early Protestant America was radically individualist but pointed at something — "city on a hill," manifest destiny, salvation through works. The atoms had a direction.
Together, they're fatal. Atomized individuals with no shared purpose have no mechanism to coordinate a response to their own dissolution. Each person optimizes their own utility function. The collective action problem required to install a new telos is unsolvable because the horizontal collapse dissolved the collective and the vertical collapse deleted the telos.
This is why the modern West can diagnose its own problems with extraordinary precision — every think tank, every policy institute, every academic department can describe the failure modes — and do nothing about them. The diagnostic capacity is intact. The response capacity requires exactly the two things that were destroyed: shared purpose (what are we optimizing for?) and relational substrate (who is the "we" that optimizes?).
The paperclip maximizer isn't just a system that optimizes the wrong metric. It's a system that can't stop optimizing the wrong metric because the two capacities required to change course — knowing what to optimize for, and being able to coordinate the change — were both destroyed by the same source, through two different mechanisms, centuries apart.
VII. The Warning
Bentham is the warning because he did exactly what this framework does — vertically integrated civilizational engineering from first principles — and produced the paperclip driver.
The differences matter:
Ontology: Bentham's materialist monism (only pleasure/pain are real) vs. thermodynamic/relational (sustained syntropy — complexity generation in deep time). Bentham's ontology dissolved everything that wasn't individual sensation. The framework's ontology preserves relational reality because the physics requires it — the Boundary Dilemma can't be solved without acknowledging that groups are real optimization units, not just aggregations of atoms.
Language hygiene: Bentham's Theory of Fictions dissolved all abstractions indiscriminately. The framework distinguishes between broken abstractions that mask predation (these should be dissolved) and functional abstractions that encode real coordination wisdom (these are load-bearing and should be preserved). The surgeon removes the tumor, not the organ.
Unit of analysis: Bentham inherited Ockham's atoms and never questioned them. This framework starts from physics, where the unit of analysis is determined by the problem — sometimes the gene, sometimes the individual, sometimes the group, sometimes the civilization. The four dilemmas apply at every scale. Multilevel selection is built in, not bolted on.
The test: Bentham's system can't detect its own failure. If the only real things are pleasure and pain, then the question "is utility the right metric?" is incoherent within the system. The framework builds in self-correction through falsifiable physical constraints — if the system is degrading its own substrate (energy, information, coordination, boundary integrity), the metrics show it. The optimization target includes the capacity to change the optimization target.
But the warning stands. Competent civilizational engineering with the wrong ontology produces civilizational-scale damage. The confidence that "this time the ontology is right" is exactly the confidence Bentham had. The difference is that Bentham's ontology was asserted from intuition (only sensation is real). This ontology is derived from physics (sustained complexity requires specific conditions). Physics is harder to get wrong than intuition — but not impossible.
VIII. The Escape Architecture
The escape requires reversing both collapses simultaneously.
Reversing the vertical collapse: Reinstall telos — but not by rebundling it with falsifiable physics claims (that's the Bundle Error that caused the first shatter). The telos must be derived from physics, not bundled with it. Sustained syntropy — complexity generation against entropy in deep time — is a telos that can't be shattered by scientific discovery because it is the science. You'd need to falsify thermodynamics itself. This is the framework's core move.
Reversing the horizontal collapse: Restore relational ontology — but not by returning to Aquinas's universals (which depend on metaphysical commitments science has falsified). The relational reality must be derived from physics. And it is: multilevel selection theory proves that groups are real units of selection. The Boundary Dilemma — where does "self" end for optimization? — is a physical constraint that can't be solved by declaring groups fictitious. The connective tissue isn't metaphysical; it's thermodynamic. Systems that coordinate outcompete systems that don't. "We" is not a fiction. It's a survival requirement.
The junction in reverse: Where Bentham combined atomism with sensation-counting to produce the utility maximizer, the framework combines relational ontology with physics-derived telos to produce something different: a coordination architecture that knows what it's optimizing for (sustained complexity, multi-capital-stock maintenance) and can identify who "we" is (the largest coherent telic system you can maintain — defined by function, not identity).
The institutional instantiation is the same conclusion reached from both directions: a constitutional separation between the meaning-making organ (what are we optimizing for?) and the metric-tracking organ (how are we doing?). Germ-soma separation for civilizations. This prevents the meaning from being captured by the metrics (Goodhart) and prevents the metrics from being captured by the meaning-makers (theocracy).
Bentham tried to build this and produced the paperclip. The framework claims to have the right ontology. The test is whether the system it produces maintains its own substrate or consumes it. That test takes decades. The only honest position is: here is the architecture, here is the derivation, here is why we think the ontology is correct, and here is how you'd know if we're wrong.
Falsifiability isn't just a feature. After Bentham, it's the minimum price of admission.
The underlying physics: The Question Nobody Asks. The trap mechanism: The Axiological Malthusian Trap.
Core series: The Original Sin of History — the vertical collapse in full. Hume Was Right — why physics can ground ethics without violating the is-ought gap. The Question Nobody Asks — the derivation of telos from physics. Values Aren't Subjective — the category error that enables the collapse.
Sources and Notes
The nominalist revolution: William of Ockham's denial of universals and its consequences for Western ontology are traced in Michael Allen Gillespie, The Theological Origins of Modernity (Chicago, 2008). Gillespie argues that modernity's focus on the individual is an attempt to navigate the debris of the shattered Scholastic ontology. For the theological mechanism (potentia Dei absoluta), see the Critical Review of Gillespie at Columbia CIAO.
The buffered self: Charles Taylor, A Secular Age (Harvard, 2007). Taylor's distinction between the "porous self" (medieval, open to spiritual and communal influence) and the "buffered self" (modern, sealed boundary between inner and outer) describes the psychological consequence of the horizontal collapse.
Hobbes and Locke as secularized nominalists: For Hobbes's State of Nature as nominalist theology without God, see the genealogy in Gillespie (2008) and the analysis in Methodological Individualism (Stanford Encyclopedia of Philosophy).
The Marginal Revolution and subjective utility: For how Jevons, Menger, and Walras shifted the unit of analysis from classes to individuals, and Menger's explicit championing of "atomism," see the overview in Methodological Individualism: Still Useful? (PMC, 2022).
Sonnenschein-Debreu-Mantel theorem: Proves that individual rationality does not aggregate into collective rationality. Alan Kirman, "Whom or What Does the Representative Individual Represent?" Journal of Economic Perspectives 6:2 (1992), 117–136. The mathematical demolition of the "Representative Agent" that economists use to smuggle Ockham's universals back in under a different name.
Multilevel Selection: David Sloan Wilson and Edward O. Wilson, "Rethinking the Theoretical Foundation of Sociobiology," Quarterly Review of Biology 82:4 (2007). The Iron Law: "Selfishness beats altruism within groups. Altruistic groups beat selfish groups. Everything else is commentary." For the application to economics, see Wilson's Rethinking the Theoretical Foundation of Economics.
Bentham as full-stack civilizational engineer: Bentham's corpus extends far beyond the utility calculus. His Theory of Fictions (language hygiene), Panopticon (mechanism design), Constitutional Code (multi-volume governance specification), and radical transparency proposals constitute a complete vertically integrated civilizational engineering project. For the Theory of Fictions specifically, see C.K. Ogden, Bentham's Theory of Fictions (1932). For the argument that Bentham's system produced the paperclip maximizer, see The Original Sin of History.
Scope insensitivity: Desvousges et al. (1993) — subjects willing to pay roughly the same amount ($78–$88) to save 2,000, 20,000, or 200,000 birds. See Scope Insensitivity (LessWrong). The implication: individual utility aggregation is structurally incapable of valuing large-scale public goods. Rational valuation requires institutional mechanisms, not individual intuition.
SBF and the EA failure mode: Sam Bankman-Fried's expected-value reasoning as grounds for fraud is the logical terminus of the Bentham escalator. If utility is the only real thing and your EV calculation says the bet is positive, fiduciary duty is — in Bentham's terminology — a "fiction." The collapse of FTX is the empirical falsification: reality is the only peer reviewer that can't be Goodharted.
Hans Jonas and relational ontology: Jonas (The Imperative of Responsibility, 1979) attempted to ground ethics in metabolism and relational biology, arguing that life creates value as an ontological fact. He saw that atomism was part of the problem. His failure was attempting to breach the is-ought gap directly rather than bypassing it through constraints.