The Illusion of Knowledge

These bedazzled methods fall under the category that Futurist Ilkka Tuomi labels as Epistemic Uncertainty , and the argument goes something like this:

“I’m unsure about the answer to this problem, but I can solve it by gathering more data. Once I gather more data related to the problem, I will be able to devise a solution.”

However, as Tuomi astutely... See more

The rule in this case is that macro forecasts rarely lead to exceptional performance. For me, the exceptionalness of the success stories proves the general truth of that assertion.

The bottom line for me is that forecasts can’t be right often enough to be worthwhile.

economic forecasts are blunt instruments at best, rarely being able to anticipate economic turning points more than a few months in advance. Fairly often, in fact, these forecasts have failed to “predict” recessions even once they were already under way: a majority of economists did not think we were in one when the three most recent recessions, in

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