NNT is my intellectual superhero but the amount of hate he gets is tremendous.
Please understand that NNT's biggest issues are not so much with the way statistical models are applied to economics and finance, but how social scientists sometimes feel compelled to apply them to social fields as well, which is plain unscientific, dumb, and mostly disastrous.
So when you bear down on his arguments, please keep this context in mind.
You're making too many gross generalisations here, as does Mr Taleb. He's right that in all fields there are statistically illiterate people making huge errors, and academic theorists have been making such - and more complete - criticisms for a while now. So, there's a real issue. However, there are a good number of competent social scientists too, beyond the mediocre morass, who understand just what variable construction and limitations to statistical operations are.
Among other things, I've seen way more appalling applications of statistics in finance and economics than I have in social science.
Also, the assertion in your post that the misapplication of statistical models in social science is "disastrous" but somehow giving finance a pass? You've got to be kidding me.
Please understand that NNT's biggest issues are not so much with the way statistical models are applied to economics and finance, but how social scientists sometimes feel compelled to apply them to social fields as well, which is plain unscientific, dumb, and mostly disastrous.
So when you bear down on his arguments, please keep this context in mind.