Part 8/9:
The inflexibility of a centrally planned system manifests in the inability to pivot or adapt based on customer feedback. Unlike in market economies, where ineffective practices lead to failure and replacement by more competent businesses, centrally planned factories often persist without penalty, perpetuating waste and inefficiency.
Conclusion: The Need for Consumer Feedback
Ultimately, Goodhart's Law exemplifies an essential truth about economic productivity: achieving desired outcomes necessitates a robust system that allows for consumer feedback and choice. To produce goods that are genuinely beneficial, performance measures must align with the actual needs of users while fostering a competitive environment that incentivizes efficiency and innovation.