We optimize for GDP, and forget about actual well-being and psychological happiness of the population.
Who do you think optimizes for GDP and how would they act differently if they wouldn’t optimize for GDP?
While politicians do care about GDP, it’s not the central metric to which they optimize. Politicians are likely better understand as goodharting on winning elections and even that they don’t really (see Dominic Cummings for how politicians fail to optimize for winning elections).
The FED has a dual mandate of caring about the employment rate and stable prices. Eliezer wrote about how it would be better if they would actually focus on NGDP but they don’t.
Saying that any Western government is goodharting GDP, requires a lot of ignorance of what’s actually going on.
Who do you think optimizes for GDP and how would they act differently if they wouldn’t optimize for GDP?
While politicians do care about GDP, it’s not the central metric to which they optimize. Politicians are likely better understand as goodharting on winning elections and even that they don’t really (see Dominic Cummings for how politicians fail to optimize for winning elections).
The FED has a dual mandate of caring about the employment rate and stable prices. Eliezer wrote about how it would be better if they would actually focus on NGDP but they don’t.
Saying that any Western government is goodharting GDP, requires a lot of ignorance of what’s actually going on.