Quotulatiousness

January 28, 2021

The economic impact of a US national minimum wage of $15 per hour

Filed under: Business, Economics, Government, USA — Tags: , , , — Nicholas @ 03:00

I missed this post by Warren Meyer last week, but it’s still very topical:

I have talked a lot about the negative effects of higher minimum wages on low-skill workers. Two good example background posts are here and here. I covered how a broad range of labor regulation hurts unskilled workers in a cover story for Regulation magazine a few years back. Unfortunately, in a country where the average American buys about $1000 in lottery tickets each year, the willingness to believe we can get something for nothing is strong.

But I want to talk specifically about a Federal minimum wage increase, where one other problem emerges. The best way to state this is — how can one possibly set the same minimum wage for San Francisco at the same rate as one does for rural Mississippi? Here is one source for comparative state cost of living. Doing this by county would make the curve even wider.

Cost of living in Hawaii is more than 2x that of Mississippi. CA and NY are not far behind. A minimum wage that might comfortably be accommodated in San Francisco (and note even there the rise to $15 was ending service jobs in that city long before COVID), would be an economic disaster for rural Alabama. I don’t tend to think primarily along racial lines as seems to be the case on the Left today, but basically this is a policy driven by rich white tech guys in San Francisco that is going to devastate the employment prospects of rural blacks.

Whatever one’s misgivings about minimum wages, it is certainly true that allowing states to take the lead on setting minimum wages (counties would make even more sense) makes a lot more sense that trying to take action at the national level. Even with state action there are disparities.

January 23, 2021

How .22LR Ammo is Made

Filed under: Business, USA, Weapons — Tags: , , — Nicholas @ 02:00

Lucky Gunner Ammo
Published 16 Apr 2020

We were offered a rare glimpse into Federal’s rimfire plant in Anoka, MN to watch how .22 LR ammunition is made. We all know the basic components involved — each cartridge consists of a case with primer, propellant, and a bullet. Watching them all come together on a massive scale with a choreographed dance of modern automated machinery is a surprisingly gratifying experience.

Special thanks to our friends at Federal Ammunition and Vista Outdoor for the invitation!

Support our channel. Buy ammo from Lucky Gunner!

January 19, 2021

Milton Friedman’s “Shareholder Doctrine” is alive and well

Filed under: Business, Economics, History, USA — Tags: , , , — Nicholas @ 03:00

Satish Bapanapalli on why Friedman’s doctrine helps to explain why auto manufacturers spend so much money to crash-test their vehicles:

Ford Focus versus Ford Explorer crash test IIHS by Brady Holt is licensed under CC BY 3.0

Of all of Friedman’s great ideas, the Shareholder Doctrine is perhaps the most misunderstood by academics, in large part because many left-leaning intellectuals use the good old straw man argument to misleadingly caricature the doctrine as a “profit-at-all-cost system regardless of human toll.”

Case in point, the latest sermon by some reputed academics published in Fortune magazine: “50 years later, Milton Friedman’s shareholder doctrine is dead.”

This one has all the usual tropes, including the claim that “Friedman … urged business to use its muscle to reduce the effectiveness of unions, blunt environmental and consumer protection measures, and defang antitrust law. He sought to reduce consideration of human concerns [such as] treat[ing] workers, consumers, and society fairly.”

Friedman said no such things. Read it for yourselves. Friedman’s primary argument was that it is not the job of the officers of a corporation (corporate executives) to fight for social causes. The officers must only act in accordance with the shareholder’s wishes, “which generally will be to make as much money as possible while conforming to the basic rules of the society, both those embodied in law and those embodied in ethical custom.”

Of course, in some cases, the shareholders may themselves encourage charitable spending and other corporate policies and activities deemed “socially responsible.” In which case, executives are tasked with finding the best ways to fulfill those objectives. In his article, Friedman clearly demonstrates why this is a logically precise position.

The scolds, who authored the Fortune article, put forth an alternative. Their “three pillars” proposal advocates for laws to be imposed on corporations with vague and fuzzy objectives (note the italicized words) such as “responsible corporate citizen[ship]”, “treating workers … fairly“, “avoiding externalities, such as carbon emissions, that cause unreasonable or disproportionate harm to others”, and corporations should make profits by “benefiting others.” To rub foolishness on the vagueness, the proposal calls for putting the onus on the corporations to measure and demonstrate progress on these fuzzy objectives! To put it in Friedman’s own words, such proposals “are notable for their analytical looseness and lack of rigor.”

January 16, 2021

QotD: Make companies product-focused again

Filed under: Business, Politics, Quotations — Tags: , , — Nicholas @ 01:00

When I go to a coffee shop or a bank, I am not interesting in their views about politics or social issues, indeed, I actively do not want to know. I just want a fucking coffee or to arrange something financial (hopefully not confusing the two). If they want to tell me about how yummy their products are because their beans are lovingly rubbed with civet poo, or how well they are looking after their depositors’ money, that is fine.

But pretty much anything else … please just STFU unless it is directly related to the business. I get that certain “life style” brands might want their logo in a Formula One car or on Eddie Izzard’s frock. But I am not interested in how inclusive the local bookstore is, nor do I want to hear that an auto-parts shop is proud of the blasted NHS.

I do not even want any companies declaiming how much they support causes I like, let alone ones that I either oppose or which just make me roll my eyes at the sheer presumption of their marketing department. For me, this is negative marketing. I already avoid certain shops and restaurants that prominently display their “social awareness” to me: they are actually doing the opposite, emphasising that I am not their target market. So I take them at their word and if I can easily get what they sell elsewhere from someone who doesn’t, that is what I always do.

Make companies product-focused again.

Perry de Havilland, “Make companies product-focused again”, Samizdata, 2020-09-30.

January 12, 2021

“Big Tech” flexes the muscles and squeezes down the Overton Window online

In the FEE Daily newsletter, Brad Polumbo outlines the collusive mass deplatforming of President Trump and many of his high profile supporters:

Screencap of a Fox News report on the social media networks that have deplatformed President Donald Trump, January 2021.

Amid the fallout from the January 6 attack on the US Capitol, President Trump has been banned from just about every social media platform.

This crackdown is, frankly, unprecedented.

To be sure, social media and tech companies are private companies, and are not bound by the First Amendment. They have no legal obligation to host President Trump’s speech.

But there’s a question beyond can here that ranges into the should.

And I, for one, find it extremely disturbing that the elected President of the United States — who just weeks ago received roughly 75 million votes — is deemed beyond the pale of acceptable speech by Silicon Valley overlords who are overwhelmingly left-wing. Especially so given that these same platforms still allow the literal Chinese Communist Party to post pro-genocide propaganda and allow the members of the Iranian regime to openly foment violence.

The least consumers can demand is some consistency. Personally, I would find it much more reasonable for companies like Twitter to remove individual posts, including by President Trump, that violate rules — like fomenting violence — than to erase prominent political figures from the digital conversation entirely.

We should all want to see a free and open discourse online promoted by the companies we patronize. At the same time, none of this is cause for government control of the internet or meddling with the Section 230 liability shield.

If conservatives don’t like how Twitter CEO Jack Dorsey regulates content, they’d hate how Kamala Harris would do it.

January 6, 2021

The Use and Abuse of the US Postal System (feat. Mr. Beat)

Filed under: Bureaucracy, Business, Government, History, Politics, USA — Tags: , , , — Nicholas @ 02:00

The Cynical Historian
Published 10 Oct 2020

Thanks to Private Internet Access for sponsoring this video. Click here to get 77% off and 3-months free: http://www.privateinternetaccess.com/…

We’ve been seeing a lot of coverage about the post office here in the United States. A lot of folks talk about the history of it, but generally in a piecemeal fashion. The fact most of this commentary lacks is that the post office has always been a political tool, from its beginnings even before the US Constitution. Interestingly enough, what it has been used for over the years has changed substantially, but it is always a harbinger of the up and coming dominant ideology. The post office is a cornerstone of our democracy. The postal system in the United States is uniquely important.

Check out Mr. Beat’s video: https://www.youtube.com/watch?v=favVdKa6cRQ
————————————————————
Connected videos:
3:30 – 1776 | Based on a True Story: https://youtu.be/xY4Te8Qm07A
9:15 – What caused the Mexican-American thing? https://youtu.be/HTmSN4Exci0
9:15 – What Caused the Texas Revolution? https://youtu.be/lDWH-DC74Pk
9:25 – California Gold Rush: https://youtu.be/W1dmyx6LBKA
9:30 – History of California: https://www.youtube.com/playlist?list…
11:30 – The Sectional Crisis: https://youtu.be/Ff2AKILyi0o
14:05 – History of Voting by Mail: https://www.youtube.com/watch?v=favVd…
18:25 – Trains and Oil in California: https://youtu.be/0Ef0Ir-hbFc
18:30 – The History of Early Flight: https://youtu.be/sPgxuD0uYYE
20:35 – US Veterans History: https://youtu.be/ANUqaNykuRs
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references:
The United States Postal Service: An American History (Washington, DC: United States Postal Service, 2020). https://about.usps.com/publications/p… [PDF]

USPS’s website has a trove of information on their history: https://about.usps.com/who-we-are/pos…
The national postal museum is run by the Smithsonian and includes numerous research articles available to anyone on their website: https://postalmuseum.si.edu/research-…

https://www.nationalgeographic.com/hi…

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Wiki: The United States Postal Service (USPS; also known as the Post Office, U.S. Mail, or Postal Service) is an independent agency of the executive branch of the United States federal government responsible for providing postal service in the United States, including its insular areas and associated states. It is one of the few government agencies explicitly authorized by the United States Constitution.

The USPS traces its roots to 1775 during the Second Continental Congress, when Benjamin Franklin was appointed the first postmaster general. The Post Office Department was created in 1792 with the passage of the Postal Service Act. It was elevated to a cabinet-level department in 1872, and was transformed by the Postal Reorganization Act of 1970 into the United States Postal Service as an independent agency. Since the early 1980s, many direct tax subsidies to the USPS (with the exception of subsidies for costs associated with disabled and overseas voters) have been reduced or eliminated.
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Hashtags: #history #USPS #USMail

January 5, 2021

QotD: Tax “loopholes”

Filed under: Business, Government, Law, Politics, Quotations, USA — Tags: , — Nicholas @ 01:00

… “loopholes” is a term most often used by people who don’t understand accounting or tax law, to complain about how somebody else used the existing laws created by congress to pay less than what that person thinks is “fair.” Regular people have heard the bullshit term loopholes tossed around so much that they start to believe that it is some magical easy button that rich guys can just push that makes it so they don’t have to pay taxes.

Nope. They’re just laws. These “loopholes” exist because at some point in time congress (both democrat and republican both!) decided that they wanted to promote some type of behavior or discourage some other behavior. So they basically put a reward into the law saying if you do this thing we like, you’ll pay less taxes! Or the opposite, congress wanted to discourage some behavior, so if you do that thing we don’t want, it will cost you more.

Both sides have done this forever, state and federal. We want you to drive electric cars so if you buy an electric car you get a tax break this year. YAY! Uh oh, we want you to stimulate the economy by buying this kind of machinery faster, so you have to depreciate your assets this other way or you’ll pay more! BOO! You get a discount for paying your employees health insurance, YAY! Oh, wait … Not that kind of health insurance. BOO!

So on and so forth, up and down, these perks come and go, all based upon whatever behavior congress is trying to promote at that time (or what favors they are doing for their friends). Why was mortgage interest deductible? Because at one point congress said “we really want people to own houses!” Even regular people have things that are considered “loopholes” to somebody.

So when the blue check mark journalism major (who probably dropped out of PoliSci because “there’s too much math”) declares that it is immoral that some rich dude didn’t pay his fair share because he used loopholes, those are basically a bunch of meaningless buzz words strung together to prey on the feelings of the gullible.

Larry Correia, “No, You Idiots. That’s Not How Taxes Work – An Accountant’s Guide To Why You Are A Gullible Moron”, Monster Hunter Nation, 2020-09-28.

January 1, 2021

QotD: Buying “organic” food

… every time I buy “organic”, I feel like I’m sending a reinforcement to several different forms of vicious stupidity, beginning with the term “organic” itself. Duh! Actually, all food is “organic”; the term just means “chemistry based on carbon chains”.

Take “no GMOs” for starters. That’s nonsense; it’s barely even possible. Humans have been genetically modifying since the invention of stockbreeding and agriculture; it’s what we do, and hatred of the accelerated version done in a genomics lab is pure Luddism. It’s vicious nonsense, too; poor third-worlders have already starved because their governments refused food aid that might contain GMOs. And without GMOs it’s more than possible that the new wave of wheat rust, once it really gets going, might condemn billions to death.

Vegan? I’ve long since had it up to here with the tissue of ignorance and sanctimony that is evangelical veganism. Comparing our dentition and digestive tracts with those of cows, chimps, gorillas, and bears tells the story: humans are designed to be unspecialized omnivores, and the whole notion that vegetarianism is “natural” is so much piffle. It’s not even possible except at the near end of 4000 years of GMOing staple crops for higher calorie density, and even now you can’t be a vegan in a really cold climate (like, say, Tibet) because it’ll kill you. In warmer ones, you better be taking carnitine and half a dozen vitamins or you’re going to have micronutrient issues sneak up on you over a period of years.

OK, I give on gluten-free. Some people do have celiac disease; that’s a real need. But “no trans fat”? Pure faddery, or the next thing to it. The evidence indicting trans fats is extremely slim and surrounded by a cloud of food-nannyist hype. I hate helping to keep that sort of balloon inflated with my dollars.

Who could be against “fair trade”? Well, me … because the “fair trade” crowd pressures individual growers to join collectives with “managed” pricing. If you’re betting that this means lazy but politically adept growers with poor resource management and productivity prosper at the expense of more efficient and harder-working ones, you’ve broken the code.

Finally, “pesticide-free”. Do I like toxic chemicals on my food? No … but I also don’t fool myself about what happens when you don’t use them. This ties straight back to the general cluster of issues around factory farming. Without the productivity advantages of pesticides, synthetic fertilizer, and other non-“organic” methods, farm productivity would plummet. Relatively wealthy people like me would cope with reduced availability by paying higher prices, but huge numbers of the world’s poor would starve.

I buy “organic” food because it tastes better and I can, but I feel guilty about reinforcing all the kinds of delusion and superstition and viciousness that are tied up in that label. We simply cannot feed a world population of 6.6 billion without pesticides and factory farming and GMOs and preservatives in most bread; now, and probably forever, “organic” food will remain a luxury good.

Try telling its political partisans that, though. Hyped on their belief in their own virtue, and blissfully ignorant about scale problems, they have already engineered policies that have cost thousands of lives during spot famines. The potential death toll from (especially) anti-GMO policies is three orders of magnitude higher.

And my problem reduces to this: how can I buy the kind of food I want without supporting dangerous delusions?

Eric S. Raymond, “Organic guilt”, Armed and Dangerous, 2010-08-23.

December 29, 2020

The Economics of Wine (Orley Ashenfelter, Princeton)

Filed under: Business, Economics, France, USA, Wine — Tags: , , — Nicholas @ 02:00

Marginal Revolution University
Published 30 Sep 2020

What does an economist know about wine? Given that many wines need years to mature, how can one predict which ones will be great or not?

Princeton’s Orley Ashenfelter explains how he used economic principles and regression analysis to predict wine quality (and score great deals!). His research helped spawn an entire field dedicated to the economics of wine.

This video is based on the following paper:

Predicting the Quality and Prices of Bordeaux Wines By Orley Ashenfelter
https://www.researchgate.net/publicat…

More of Orley Ashenfelter’s work: https://irs.princeton.edu/people/orle…

Orley Ashenfelter’s vineyard: https://cedarrosevineyards.com/

Want to see more Economists in the Wild? Check out our series: https://mru.io/economists-wild-67905

December 26, 2020

The Matchbox Car Story

Filed under: Britain, Business, History — Tags: , , , , — Nicholas @ 02:00

Little Car
Published 27 Jan 2020

Matchbox is a popular British toy brand which was introduced by Lesney Products in 1953, and is now owned by Mattel, Inc. The brand was given its name because the original die-cast Matchbox toys were sold in boxes similar to those in which matches were sold. The brand grew to encompass a broad range of toys, including larger scale die-cast models, plastic model kits, and action figures.

During the 1980s, Matchbox began to switch to the more conventional plastic and cardboard “blister packs” that were used by other die-cast toy brands such as Hot Wheels. The box style packaging was re-introduced for the collectors’ market in recent years, particularly with the release of the “35th Anniversary of Superfast” series in 2004.

The script for this video comes from Wikipedia:

https://en.wikipedia.org/wiki/Matchbo…

If you find issues with the content, I encourage you to update the Wikipedia article, so everyone can benefit from your knowledge.

If you like these video and want to support me from just $1 or 80p a month at https://www.patreon.com/bigcar

#matchboxcars

December 23, 2020

No, Console Scalpers Aren’t Ruining Christmas

Filed under: Business, Economics, Gaming, Media — Tags: , , , — Nicholas @ 04:00

Foundation for Economic Education
Published 22 Dec 2020

Support Out of Frame on Patreon: https://www.patreon.com/OutofFrameShow

Check out our podcast, Out of Frame: Behind the Scenes: https://www.youtube.com/channel/UCiS5…

As we enter peak holiday season, most people have their shopping done by now, but as always, many are scrambling last-minute for their purchases. And if you aren’t one of those early-birds fortunate enough to procure a PS5 or Xbox Series X, you can guarantee that you won’t be able to find one unless you’re willing to pay $1,200 to a scalper.

Many are understandably frustrated. How is it fair for people to buy up the consoles at $500 and sell for nearly double or triple the cost? “There ought to be a law” against that kind of thing — right?

Well, in short, there’s nothing wrong with scalping — and a few economic lessons will help explain why.

Scarcity is real and so is time-preference. Scalpers (and even bots) show that demand for some goods is so high that people are willing to pay several times the list price — which could provide a lot of information to Sony and Microsoft on how many consoles to produce and in what parts of the world. They could factor that information into the future, so there would be less problems with availability, but most retailers make this information exchange impossible.

______________________________
CREDITS:

Produced by Sean W. Malone
Written by Jen Maffessanti & Sean W. Malone
Edited by Paul Nelson
Asst. Edited by Jason Reinhardt

Repost – “Merry Christmas” versus “Happy Holidays” versus “Happy Midwinter Break”

L. Neil Smith on the joy-sucking use of terms like “Happy Midwinter Break” to avoid antagonizing the non-religious among us at this time of year:

Original infographic from Treetopia – https://www.treetopia.com/Merry-Christmas-vs-Happy-Holidays-a/304.htm

Conservatives have long whimpered about corporate and government policies forbidding employees who make contact with the public to wish said members “Merry Christmas!” at the appropriate time of the year, out of a moronic and purely irrational fear of offending members of the public who don’t happen to be Christian, but are Jewish, Muslim, Hindu, Buddhist, Sikh, Jain, Rastafarian, Ba’hai, Cthuluites, Wiccans, worshippers of the Flying Spaghetti Monster, or None of the Above. The politically correct benediction, these employees are instructed, is “Happy Holidays”.

Feh.

As a lifelong atheist, I never take “Merry Christmas” as anything but a cheerful and sincere desire to share the spirit of the happiest time of the year. I enjoy Christmas as the ultimate capitalist celebration. It’s a multiple-usage occasion and has been so since the dawn of history. I wish them “Merry Christmas” right back, and I mean it.

Unless I wish them a “Happy Zagmuk”, sharing the oldest midwinter festival in our culture I can find any trace of. It’s Babylonian, and celebrates the victory of the god-king Marduk over the forces of Chaos.

But as anybody with the merest understanding of history and human nature could have predicted, if you give the Political Correctness Zombies (Good King Marduk needs to get back to work again) an Angstrom unit, they’ll demand a parsec. It now appears that for the past couple of years, as soon as the Merry Christmases and Happy Holidayses start getting slung around, a certain professor (not of Liberal Arts, so he should know better) at a nearby university (to remain unnamed) sends out what he hopes are intimidating e-mails, scolding careless well-wishers, and asserting that these are not holidays (“holy days”) to everyone, and that the only politically acceptable greeting is “Happy Midwinter Break”. He signs this exercise in stupidity “A Jewish Faculty Member”.

Double feh.

Two responses come immediately to mind, both of them derived from good, basic Anglo-Saxon, which is not originally a Christian language. As soon as the almost overwhelming temptation to use them has been successfully resisted, there are some other matters for profound consideration…

December 21, 2020

Horrible Christmas music in retail stores – X-mas Music

Filed under: Business, Humour, Media — Tags: , , , — Nicholas @ 04:00

Viva La Dirt League
Published 14 Dec 2020

Rowan thinks its a good idea to play X-mas music in the store for the entire Christmas period … and the staff aren’t happy

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BUSINESS ENQUIRIES – vivaladirtleague@gmail.com

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December 17, 2020

Henry Ford and the Mass Marketing of Hatred | BETWEEN 2 WARS: ZEITGEIST! | E.07 – Spring 1920

TimeGhost History
Published 16 Dec 2020

Racist conspiracies are on the rise in America. But other hysterias are also lessening. Will there be a return to normalcy?

Join us on Patreon: https://www.patreon.com/TimeGhostHistory

Hosted by: Indy Neidell
Written by: Indy Neidell and Francis van Berkel
Director: Astrid Deinhard
Producers: Astrid Deinhard and Spartacus Olsson
Executive Producers: Astrid Deinhard, Indy Neidell, Spartacus Olsson, Bodo Rittenauer
Creative Producer: Maria Kyhle
Post-Production Director: Wieke Kapteijns
Research by: Indy Neidell and Francis van Berkel
Image Research by: Daniel Weiss
Edited by: Daniel Weiss
Sound design: Marek Kamiński

Colorizations:
Daniel Weiss – https://www.facebook.com/TheYankeeCol…
Spartacus Olsson
Mikolaj Uchman

Sources:
Some images from the Library of Congress
Portrait from Bibliotheque Nationale Francaise

From the Noun Project:
– agreement by Vectors Point
– film camera by Chanut is Industries, TH
– cowboy man by Adrien Coquet
– Protest by Juan Pablo Bravo
– Immigrants by Luis Prado
– pair figure skating by Andrei Yushchenko
– singles figure skating by Andrei Yushchenko
– Letter by Mochammad Kafi
– speech by Juan Pablo Bravo, CL
– universe by Icongeek26
– Arrow by IconTrack
– Galaxy By Victoruler

Soundtracks from Epidemic Sound
– One More for the Road – Golden Age Radio
– “First Responders” – Skrya
– “Guilty Shadows 4” – Andreas Jamsheree
– “Slow Discovery” – Cobby Costa
– “Try and Catch Us Now” – David Celeste
– “The Inspector 4” – Johannes Bornlöf
– “Deviation In Time” – Johannes Bornlof
– “Disciples of Sun Tzu” – Christian Andersen

Archive by Screenocean/Reuters https://www.screenocean.com.

A TimeGhost chronological documentary produced by OnLion Entertainment GmbH.

December 14, 2020

QotD: Goodhart’s law

Filed under: Bureaucracy, Business, Economics, Quotations — Tags: , , , — Nicholas @ 01:00

This is why planning an economy simply doesn’t work. Issue targets that must be hit and people game the system to hit the targets without actually doing the desired underlying thing. Or, as it is formally constituted:

    Any observed statistical regularity will tend to collapse once pressure is placed upon it for control purposes.

Or as it has been reformulated:

    Goodhart’s law is an adage named after economist Charles Goodhart, which has been phrased by Marilyn Strathern as: “When a measure becomes a target, it ceases to be a good measure.” One way in which this can occur is individuals trying to anticipate the effect of a policy and then taking actions which alter its outcome.

Set a target for tonnes of shoes and you get one tonne shoes. Set a target for 100 shoes and you get 100 left feet. Set a target for being on time and people fiddle their definition of time.

It is, by the way, entirely fine to insist that airlines play fair with telling us how long a flight will take. You said it will take 4 hours, then 4 hours should be about the time it takes. Yes, sure, we understand, airports, crowded places. Idiot passengers forget to board, luggage must be taken off. Winds vary, thunderstorms happen, French air traffic controllers actually turn up to work today, their one day in seven. Sure, there’re lots of variables. But if you say it’s about four hours then it should be about four hours. Great.

But to complain that they pad their number a bit is ludicrous. We’re holding their feet to the fire, insisting that an underestimate will lead to financial costs. Thus, obviously, they will overestimate. That’s not really even Goodhart’s Law, that’s just human beings. But then, as we know, those who would plan everything don’t deal well with the existence of people, do they?

Tim Worstall, “Goodhart’s Law Applies To Economies, To Everything – Why Not Scheduled Airline Flight Times?”, Continental Telegraph, 2018-08-27.

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