wedrifid comments on The Importance of Goodhart's Law - Less Wrong

75 Post author: blogospheroid 13 March 2010 08:19AM

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Comment author: James_K 15 March 2010 04:29:34AM 1 point [-]

That accounts for deception, but not the difference between GDP and true economic value added, which is the whole reason GDP was raised as an example. Communist countries game GDP by getting people to produce large quantities of worthless goods (like gigantic nails). Those giant nails added to GDP, but they make anybody better off?

GDP is an approximate measure of material well being. If your economic success metric classifies a society with mass starvation and routine shortages of basic goods as being as successful as a society that doesn't, then your metric is busted.

Comment author: wedrifid 15 March 2010 04:53:36AM 4 points [-]

Communist countries game GDP by getting people to produce large quantities of worthless goods (like gigantic nails).

At least, that is the cover story that Naily uses to hide his tracks. Clippy, start taking notes!