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Economics

Goodhart's Law and the Pitfalls of Metric-Based Governance

Quick fact

In the Soviet Union, a factory was rewarded for producing a target number of nails, so it produced thousands of tiny, useless nails; when the target switched to weight, it produced a single giant nail.

Why this is interesting

You set a goal to lose 10 pounds, but the scale barely moves while your jeans fit perfectly. Why did your metric betray you?