The powers-that-be failed spectacularly on two mission-critical fronts.

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The
Wisdom of Crowds, a hypothesis popularized by James Surowiecki in his 2005 book of the same title, is among the most fascinating discoveries about the collective human psychology. It's an antithesis to Charles Mackay's "Extraordinary Popular Delusions and the Madness of Crowds."
In a nutshell, Surowiecky suggests that under certain conditions, the crowds can converge on the truth about some matter or zero in on most effective solutions to a problem more accurately and more reliably than even the best qualified experts in that problem matter. I will skip the discussion of concrete cases of this mysterious phenomenon, but for all who are interested, I summarized two of Surowiecki's most fascinating examples in my book
Mastering Uncertainty in Commodities Trading (free download at link, you'll find the relevant discussion on pages 58 and 59).
Social media are making us remarkably smartBut in order for the crowds to manifest such wisdom, a number of conditions must be satisfied: (1) the flow of information must be decentralized; (2) truthful information must be present within the information universe; (3) there has to be a wide diversity of participants in the discussion, and (4) the participants must not be dependent upon each other in making their judgments.
Modern social media may have created an environment where these conditions have satisfied in a robust way, which radically changed the way we respond to information as a collective. Until not so long ago, information flowed from centralized sources which filtered the information that reached the public. For as long as the society depended on the printed word, radio or TV for information, controlling the flow of information and shaping the narratives was relatively straightforward.
Comment: More from Ryan Dawson: All while the body is barely cold on this one: