j05ev1f3

Geographic determinism is one of those theories that explains everything after the fact and predicts almost nothing

The problem isn't transmitting information, it's how the knowledge is created. Some information only exists in peoples head until they act on it. Sometimes they don't even know it themselves until they're forced to make a decision.

This feels like it's pointing in the same direction Hayek was already pointing 80 years ago. This paper says that even if we had enough computing power to solve these problems, Hayek's argument was that we still wouldnt have all the information needed to do those calculations in the first place. That information is spread across millions of people, constantly changing, and often only known locally. So even if the computation became easy, getting all the inputs would still be impossible to achieve

The whole article rests on this false economic claim, that traditional industries don’t overhire based on expectations. They absolutely do, ALL THE TIME. Manufacturing, automotive, airlines, energy etc. all of them make demand bets and lay people off when those bets fail.

Cheap money amplified this cycle, but this isn’t a tech specific "failure", it’s just how forecasting under uncertainty work.

It’s incredible how some engineers assume they understand economics, then proceed to fail on some of its most basic premises. This tends to happen when engineering-style certainty is applied to systems that are driven by incentives and uncertainty.