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RE: LeoThread 2025-04-26 20:13

in LeoFinance6 months ago

Part 5/9:

This cycle illustrates a fundamental flaw pervasive in centrally planned economies: when targets are rooted in arbitrary metrics rather than real consumer demand, the desired end state becomes obscured. Managers become adept at gaming the system to meet quotas, often at the expense of product relevance and quality. In essence, this leads to resource misallocation that fills factories with surplus of items that are of little utility to consumers.

Goodhart's Law and Its Implications