stackyFACTSIf a factory rewards workers purely for the number of nails produced, it will receive millions of microscopic, entirely useless nails. Goodhart's law asserts that once a specific measure becomes a target, people will violently optimize their behavior to game the system. The original intent of the measurement is completely destroyed.
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Gross Domestic Product calculations are so fundamentally flawed that a hurricane leveling a city looks fantastic on paper. All the emergency spending and…
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Simon Kuznets created the foundational concept of Gross Domestic Product in the 1930s but explicitly warned the US Congress that it should never be used as a…
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The headline jobless rate looks wonderfully low because it simply erases anyone who gave up on finding a position. If you get so depressed by endless…
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By the time lagging indicators tell you the market is in trouble, you have already lost half your net worth. These metrics, like general unemployment numbers,…
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When experts talk about core inflation, they conveniently strip out the things you actually need to survive every single day. So while the government pats…
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Federal Emergency Management Agency officials actively use the operational status of local Waffle House restaurants to determine the severity of a natural…
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