The Inflation Mechanism
- James W.
- 3 days ago
- 1 min read
LinkedIn Post 07: The Inflation Mechanism
Why do AI-generated social value estimates systematically overstate community benefit?
Four reasons:
1. No counterfactuals → All activity counts as additive
2. Proxy metrics → Job placements measured instead of job persistence
3. Community voices replaced → Algorithms make assumptions instead of communities stating priorities
4. No post-occupancy verification → Estimates face no reality check
Each mechanism alone inflates estimates. Together, they create systematic overestimation.
SVGA addresses all four. The result: honest social value estimates grounded in real outcomes and verifiable methods.
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