“There are three kinds of lies: lies, damned lies, and statistics” Twain/Disraeli/Other
I’ve been wanting to write about this website for a while now, and the surrounding socioeconomic as well as political repercussions which arise. Firstly, a disclaimer; I would like to state that I am naturally dubious of political centralization, the overexpansion of governmental capacities/duties, and their ability to distort information so as to impose their political agendas. Now, without further ado let’s hop into today’s Daily Dose:
This website offers their version of statistical analysis which contradicts the official publications by the United States government [We are Being Lied To and Manipulated]. They publish alternate data for indicators, such
Additionally, these economic indicators are not entirely indicative of the economy as a whole. Firstly, the way in which they are mathematically calculated allows for a large degree of governmental manipulation, for example: 5 Ways GDP Gets it Totally Wrong. Plus, since GDP can be measured through an increase in Aggregate Demand (AD) whose formula is the following:
Consumer Spending + Government Spending + Investment + (Exports – Imports)
It is clear that a government that drastically increases spending would boost GDP (and thus, increase their “worth” prior to
Furthermore, if the Alternate Data on ShadowStats is closer to the truth, it certainly paints a catastrophic image of the US economy which is currently undergoing one of its most successful periods ever! My objective today was to unveil some of the falsehoods behind the economic indicators, how one must always be dubious of publicly available information, to understand the high incentive for manipulation of these statistics and that one must always know the underlying framework of data sets (How they are calculated? What are their limitations?).
I will be uploading a fascinating longer article on the differences between the Austrian School and the Keynesian School, and their fundamental analysis of the economy. They differ substantially on the factors which truly affect economic performance and links quite well with today’s Daily Dose. See you in the comments below!
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