CNN's John Sutter talks about the wisdom of crowds, prediction markets. He says betting markets would be a great way to find out how much our standard of living has improved. But he warns that when crowd is misinformed, wildly misinformed, these aggregation methods are not going to work well.
Bryan Caplan, of George Mason University and blogger at EconLog, talks about his book, The Myth of the Rational Voter: Why Democracies Choose Bad Policies. Caplan argues that democracies work well in giving voters what they want but unfortunately, what voters want isn't particularly wise, especially when it comes to economic policy. He outlines a series of systematic biases we often have on economic topics and explains why we have little or no incentive to improve our understanding of the world and vote wisely. So, it's not special interests that are messing things up but the very incentives that lie at the heart of a vote-based system. This is a disturbing and provocative lens for viewing political outcomes.