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Chris K. N.'s avatar

I can see both sides of this, but have a few thoughts.

I think the debate reveals something deeper about people. Predictions aren’t prophecy, just more or less educated guesswork. And we all engage in predictions daily. But we rarely examine the assumptions that went into our predictions unless (sometimes even if) we turn out to be catastrophically wrong (e.g. get in a traffic accident, lose our job, or end up in jail). And then only in hindsight. Silver does that examination for a living, and before knowing the outcome.

This is really the essence of luck – getting our predictions wrong. People who go more or less all in – in poker, traffic, businesses – when they have a 28% chance of losing, have a lot of “bad luck”. People and businesses that are too cautious miss out on “good luck”. But people and businesses that are well calibrated, and properly read tricky situations, will do better in the long run. (Of course, in order to break out of average, you need to make some bets that look to others like long shots, but good long shots are based on unique insight, not lucky gambles.)

Which brings me to my next point: What is news/media (and Nate Silver’s role in it) *for*? What are we paying for? Many people follow the news mostly for the entertainment value and to have something to talk about. They like to read true crime and true horror stories, and to talk about silly celebrities (including business and political celebrities, and prophets like Silver). To them, Silver was wrong. He failed to prophesize Trump's victory.

But there’s more value in news/information that helps you make good decisions – to decide whether to move production to China, to rent or buy, to invest in Pharma companies or chip manufacturers, to take a short cut or stay on the highway, to plant your tomatoes or wait another week or two. To people who use news to make decisions, Silver was right. If you made good sets of decisions based on a 28% chance that Trump would win, hedging and managing risk properly, you’d have beaten the market. (Of course, people were also wrong about what a Trump win would mean, and there was a lot of bad decision making going around, but not because of Silver.)

So you're right that Silver is a bad prophet, but I think he might be a good advisor.

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Daniel Greco's avatar

I think this is missing the most important thing to be said in defense of Silver. He gave Trump a much higher chance of winning than pretty much everybody else who was putting numbers to these things. Sam Wang, for example, really was massively discredited by 2016. He gave Clinton a >99% chance of winning. And the reason why Silver's probability was so much lower was based on genuine insight. Roughly, he appreciated how various states were correlated with each other, so he recognized the possibility of a systemic error (e.g., we're underestimating Trump support in the midwest) that Wang's model implicitly ruled out (by treating probabilities of various states going Trump as independent, so that the probability of *all* of them going Trump was vanishingly small). It's stuff like that that makes me think 2016, in retrospect, looks comparatively pretty good for Silver. Most people aren't in the same game as him--making a lot of forecasts and putting numbers on them. The people that are, did worse.

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