Thursday, June 11, 2009

The Disguising Of The Current Depression

An interesting report came out recently from author Michael Panzner's site, part of which appears below.

Although I believe that our government has every incentive to make the economy look better, employment appear stronger, and inflation seem weaker than they really are, I'm not a statistician or an economist (for what it's worth, some might view that as a good thing).
Hence, while I can't sit here and say for certain that our government manipulates the data in such a way that it has become meaningless, common sense tells me, for instance, that the Bureau of Labor Statistics' assumption that start-up businesses accounted for 43,000 new construction jobs in May is reason enough to doubt whatever Washington is telling us (for a bit more color on this particular statistic, check out "May Employment Report Not Believable" at

With that in mind, it's not hard to side with the views of the statistical gadfly cited in the following SmartMoney report, "True or False: U.S. Economic Stats Lie."
How’s the economy treating you? Chances are, your answer is colored largely by three things: whether you’re working (if you want to), how much you’re making and how quickly your expenses are rising. Economists rely heavily on the same factors to judge the nation’s health. At last count, 9.4% of the workforce is jobless. Compared with a year ago, the goods and services we produce are worth 5.7% less while the ones we buy are 0.7% cheaper.
Two bright people might see sharply different things in those numbers. To one, the shrinking economy is a healthy unwinding of past excess, for example, while to another it’s a dangerous downturn that calls for bold government action. But what if the numbers themselves are something we should be debating? In the alarming view of a vocal few, America’s economic measures are misstated -- rigged, really.

The accusation goes like this: Surveyors collect the nation’s data and statisticians compile and report it. Politicians naturally want the numbers to show improvement. Not being able to change the facts, they focus on the handling of facts, pressuring statisticians to change their measurements. It’s not quite one grand conspiracy but decades of minor ones compiled. Today’s reports are so perverted, the theory holds, that the numbers have detached from common experience.


  1. nice blog....very informative.....

  2. Thank you for that. Your blog is very good too! Thanks for being my first follower. Hope to see you back here soon. Bye for now.