The Wisdom of Crowds
 

In the 18th century, Adam Smith proposed a theory that the overall population, in what he called "the invisible hand", could make decisions far better than a few - no matter how "smarter" they are than the average joe.

Economists have mocked him for years for this. Everybody knows that the market is better off when run by a few wise, elites handpicked by the government to ensure the common good!;)

Well, it looks like Adam Smith got the last laugh.


http://www.cnn.com/2004/SHOWBIZ/book...wisdom.crowds/

This test is quite easy to perform. Just hold a guessing contest with a jar of jelly beans.

Bring in a brilliant mathmetician and have him guess the number.

Then have a thousand people each guess, calculate the mean of their guesses.

You will find that the crowd were closer to the correct answer than the mathmetician.

Re: The Wisdom of Crowds
 

if the majority is influenced by the 'elites' then there is no difference. this is happening right now in america. we were lied to and confinced by the elites and now we are paying the price.

Re: The Wisdom of Crowds
 

Can we have at least one thread where we don't end up arguing about Iraq? Thank you.:uhoh:

Re: The Wisdom of Crowds
 

You say last laugh like its a vengeance thing, for not being recognized earlier.

I find these conclusions were determined by studies of questionable scientific merit. You can never underestimate the stupidity of the general public.

Re: The Wisdom of Crowds
 

Of course, Im always going to say that people are the best to actually know what is better for them. AUthority of minorities over the majority is always questionnable.

Re: The Wisdom of Crowds
 

Yep, that's why socialism never works. :lol:

Adam Smith is my hero.

Re: The Wisdom of Crowds
 

If people want socialism, they know that they are doing th best, if they want full scale capitalism, theyre right.
Theyre right on both spectrums if people agree on it.

Re: The Wisdom of Crowds
 

in socialism, you will always have a few people deciding for the population who gets what, and how much of it everyone gets and who everyone does business with, that's the nature of the beast. in the free-market it's the opposite, the people get to decide who they are going to do business with, and on their own terms.

Re: The Wisdom of Crowds
 

Not at all, socialism aims for the destruction of social classes and later: the destruction of government. Anarchists are against economical freedom because of the fact it creates social classes.

Re: The Wisdom of Crowds
 

So how do you enforce the suspension of economic freedom without government? What's stopping me from forming a business and selling products for what I want, and paying my workers what I want?

Re: The Wisdom of Crowds
 

People.:rolleyes: Destruction of order, instabillity, you cant rule a business.
That or it is intensive collectivisation meaning that if you work it, it is yours. The products are to the one using the machinery, not the owners of the machinery.

Re: The Wisdom of Crowds
 

also, I think you are confusing socialism with communism...I know...it's hard. :D

Re: The Wisdom of Crowds
 

Oh, they all want the same thing, but by applying different ways. They want of an equilitarian world, a fair one. In short, not one in which 20% of the population uses 80% of the ressources.

Re: The Wisdom of Crowds
 

I thought the difference between the two was that socialism didn't advocate the abolition of gov't?

Anyway, regardless, in reality socialism requires huge bureaucracy, and you have no freedom to choose who you do business with, it's always you have to do business with the gov't or you are shot/thrown in jail etc.

Re: The Wisdom of Crowds
 

You confuse with social democracy mate.
It is a form of socialism, but most of them want its abolition. (except Stalinists...)

Communism is socialism, anarchism is, etc...

(offtopic)And you might as well have a good laugh by clicking on my sig(/offtopic)