The Scam That Is Government Statistics

From The New York Times:

When the government announced in April that the economy had grown at a moderate annual pace of 1.8 percent in the first quarter, politicians and investors saw evidence that the nation was continuing its recovery from the depths of the financial crisis. The White House called the news “encouraging” and the stock market extended its bull run. Three months later, the government announced a small change. The economy, it said, actually had expanded at a pace of only 0.4 percent in the first quarter. Instead of chugging along in reasonable health, the United States had been hovering on the brink of a double-dip recession. How can such an important number change so drastically? The answer in this case is surprisingly simple: the Bureau of Economic Analysis, charged with crunching the numbers, concluded that it had underestimated the value of vehicles sitting at dealerships and the nation’s spending on imported oil.

The real reason? America and many of its leaders:

1. Either live in Alice’s Wonderland or…
2. are incompetent.

There you go. Ready to pony up your hard earned capital and bet off government stats still?

2 thoughts on “The Scam That Is Government Statistics

  1. I don’t believe the explanation of cars and oil. They just didn’t want the real numbers on the front page so they give fake numbers and revise later thus getting this info on the back pages.

  2. Incompetent? Do you think? Really?
    Probably living in Alice in Wonderland!
    Maybe not. Alice in Wonderland actually makes sense.

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