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.
Oliver Brotherhood is a British vlogger with over 3 million subscribers who has produced a string of very popular Minecraft-related videos under the name Mumbo Jumbo; yesterday, in the space of two hours, a quarter of his videos were claimed by music publishing giant and notorious copyright fraudsters Warner Chappell, who will now get revenues […]
Writing in Fortune, Beth Kowitt gives us a look inside the Googler Uprising, wherein Google staff launched a string of internal reform movements, triggered first by the company's secret participation in an AI/drone warfare project for the Pentagon, then a secret attempt to build a censored/surveilling search engine for use in China, then the revelation […]
Pangea was founded by Al Goldstein, a Deutsche Bank investment banker who quit to found a massive, intercontinental payday lending outfit; he tapped the investors that he enriched with his payday lending business to stake him $180 million and bought up thousands of low-rent buildings in Chicago's poorest neighborhoods (which are also Chicago's blackest neighborhoods).
Heads up: The clock is winding down on a free-entry contest to win not only one of the best smartphones on the market but a handy pair of earbuds. A simple sign-up is all you need to be eligible to win a 256 GB iPhone XS Max, along with AirPods. And while “free” is tough […]
Kudos to those of us who have chosen a less wasteful third option to “paper or plastic” at the supermarket or club stores. Tote bags are reusable, but they can be a pain to tote around. Here’s an upgrade to that planet-saving measure. The Club Cart Lotus Trolley Bag is that rare tote you’ll want […]
Looking for a career in IT, gaming or software development? In the ever-changing world of the internet, versatility is your biggest asset. In other words, mastering Java might not cut it in an interview if you don’t know C#. However, there’s a bundle that covers the essentials in most any language. The Legendary Learn to […]