Goodhart's Law is one of those neat formulations that codifies something I've been trying to put my finger on for years: "once a social or economic indicator or other surrogate measure is made a target for the purpose of conducting social or economic policy, then it will lose the information content that would qualify it to play such a role."
That is, once you start measuring GDP as a way of gauging social welfare, people will start to figure out ways to make GDP go up without improving social welfare (say, by swapping dirty financial derivatives). Once Google starts measuring inbound links as a way of evaluating the importance of web-pages, people will figure out how to increase the inbound links to unimportant pages (splogging, blogspam). And once you measure fat or calorie content as a proxy for the healthfulness of food, manufacturers will figure out how to decrease fat and calories without making the food more healthful (reducing fat by adding sugar, reducing calories by adding poisonous artificial sweeteners).
The law was first stated in a 1975 paper by Goodhart and gained popularity in the context of the attempt by the United Kingdom government of Margaret Thatcher to conduct monetary policy on the basis of targets for broad and narrow money, but the idea is considerably older. It is implicit in the economic idea of rational expectations. While it originated in the context of market responses the Law has profound implications for the selection of high-level targets in organisations.
Google expected to be punished by the European Union for anticompetitive shenanigans, but it didn’t expect a slap this hard: €2.42 billion, the largest fine on record. The company says it “respectfully disagrees” with both the ruling and the amount and may appeal. The commission believes it has struck a blow for consumers and for […]
The owners of Toronto’s “Trump Hotel” just spent a reported $6M to get out of its deal with Trump and cleanse their property of his hated name; they will probably rebrand it as a “St Regis” hotel instead.
Verizon’s using its purchase of Yahoo for more than undermining the fight for net neutrality: it’s also using its new acquisitions to make anti-competitive moves against its telcoms rivals, deploying the users of Flickr and Tumblr as hostages.
Despite the upfront cost, electric toothbrushes are much better at removing plaque than those freebies from the dentist’s office. For those who struggle to fill the American Dental Association’s recommended two minutes of brushing time, or anyone with limited dexterity, a sonic toothbrush can give your oral care routine a boost.To keep your chops healthy […]
Learning a new language will give your resume an upgrade, sure, but it will also provide a huge cognitive boost for mental tasks outside of translation and conversation. Bilingual brains have been shown to be better at handling multiple concurrent tasks, and gaining fluency in a new tongue is an amazing way to improve memory, […]
If you struggle to get a good night’s rest, consider replacing your pillows before dropping hundreds on a new mattress. You can give your tired neck a break with a 2-pack of memory foam pillows, available now in the Boing Boing Store.Each of these pillows is stuffed with cooling polyurethane foam that molds to your […]