Neither Keynesian nor Google can figure out what other People are Thinking

Posted by PITHOCRATES - November 9th, 2013

Week in Review

Governments love Keynesian economics.  As it’s a backdoor to a managed economy.  The Soviet Union failed so we can’t have any more managed economies.  But if we call things ‘stimulus’ and ‘investments’ we can pretend we don’t have a managed economy when we actually do.  Which is why governments love Keynesian economics.  It lets them, the brilliant people, use their superior intellect to make the economy better.  Because they can figure out what we’re thinking.  Even though Google can’t (see Google admits the human brain beats an algorithm by Eric Rosenbaum, CNBC, posted 11/9/2013 on Yahoo! Finance).

This past week, there was an old-school battle of wits that captured the world’s attention: a chess championship…

It was a good reminder that even with the overwhelming nature of the information economy and long past Garry Kasparov’s waving of the white flag against IBM’s chess-playing grandmaster machines, human ingenuity still has a role to play-and, in fact, even Google admitted as much this past week. There are just some tasks at which Google’s algorithms remain at a competitive disadvantage to actual human beings, one being personalized answers to questions that require expert assistance. And so Google announced its “helpouts” product, which the New York Times said was “an acknowledgement by the company that its search engine misses a lot of information that people want.”

People don’t say “I’ll use an Internet search engine to find that information.”  No.  They say “I’ll Google it.”  Sometimes even when they’re using Yahoo or Bing.  It’s like Kleenex came to mean tissue.  And how Xerox came to mean photocopy.  We tend to call things by the industry dominator of those things.  And Google dominates the business of trying to figure out what other people are thinking.  So they’re the best at trying to figure out what other people are thinking.  But even they admit they can’t figure out what other people are thinking.

This is why Keynesian economics fail.  No one can figure out what other people are thinking.  Let alone hundreds of millions of people.  Which is why America became the world’s number one economy when the government was NOT trying to figure out what people were thinking to manage the economy.  That changed during the latter half of the 20th century.  And now the American economy is not what it once was.  Because Keynesians are no better than Soviet planners.  And the more they try the more they risk suffering the same fate of the Soviet Union.  For the Soviet Union wasn’t defeated by a superior military.  They were defeated by a superior economic system.

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