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Friday, March 27, 2009

Useless Statistics

The downward revision of last year's government statistics about the economy shows just how unreliable government information really is.

The Times reports that GDP fell by 1.6% during Q4 of 2008, not the 1.5% previously estimated. Extrapolated on an annual basis this means that GDP fell by 2%, rather than the 1.9% previously estimated.

Aside from providing the media with lurid headlines, what precisely is the point of government statistics when they are so clearly unreliable?

The most effective measure of the strentgh/weakness of the economy, is the number of available London taxis for hire on the streets of London after midnight. The weaker the economy, the more taxis available and the more prepared the driver to take the passenger outside of Central London.

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