... Many decades ago, The Economist declared "Keynes is dead,"
... As we know, Keynes was resurrected ...
... Given the state of government policy around the world, it's beginning to look like it's time to ask the question: Is Hayek dead?
... Hayek's warning was aimed at the menace of central planning, but it likely also applies to big data corporate planning. Regardless of volume and quality, he said, data and statistics are about the past and are notoriously incapable of predicting even the smallest of changes in economic behaviour. Big data may have uses, but a management revolution based on terabytes of data and YouTube views? Let's hope Hayek isn't dead yet.This also brings to mind “climate change”. Whether applied to directing an economy or managing “climate change” (which inevitably leads to attempts at directing the global economy) central planning is fatally flawed. Both climate change and economics have in common:
Huge complexity |Hayek is alive and well.
Faulty theory |
Faulty data | >> Disastrous policy
Faulty models |