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.
Warner Bros has sued talent agency Innovative Artists for running an internal-use Google Drive folder that let its clients and staff review movies in the course of their duties. They say the company ripped “screeners” (DVDs sent for review purposes) and put them on the server, whence they leaked onto torrent sites.
AT&T’s secret “Hemisphere” product is a database of calls and call-records on all its customers, tracking their location, movements, and interactions — this data was then sold in secret to American police forces for investigating crimes big and small (even Medicare fraud), on the condition that they never reveal the program’s existence.
I still love Twitter and hope it finds a way forward. But it looks like all the potential suitors have passed on buying it, and job cuts are in the offing. Twitter Inc., having failed to sell itself, is planning to fire about 8 percent of its workforce as the struggling social-media company prepares to […]
I’ve never really felt the need to purchase a smartwatch because a lot of them aren’t very functional, but at just shy of $30, the Martian Notifier Smartwatch was worth checking out. For that low of a price, it actually does feature an impressive amount of functionality, and comes in handy when you don’t want to be carrying around your […]
Geek Fuel is a subscription delivery service that caters to those of us that love comics, gaming, and general geek culture. Every month, Geek Fuel will assemble a box of goodies with a value of $50 or over. The specific items are a mystery, but you’ll always get an exclusive t-shirt not found anywhere else, a full […]
If you like to DIY and you like helicopters, you’re going to really love the Flexbot Hexacopter Kit. This copter blows traditional models out of the water: it includes everything you need to actually build your own hexacopter, and then pilot it like a pro, too.The construction is complicated enough to give you a challenge, […]