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April 30, 2013

Distracting Attention With A Statistical Illusion

"The bottom line is that now certain private sector salaries (in R&D and entertainment) will be counted twice and public pension contributions will be counted even if they aren't made.

The economy will not actually be any larger or grow any faster, but the statistics will claim otherwise.

With the stroke of a pen, our debt to GDP ratio will come down. Will this soothe the fears of our creditors? Will critics of big government take comfort that spending as a share of GDP may be lower?

My guess is that the government is confident that its trick will work, and that distracting attention with a statistical illusion is the sole motivation for the change." - in Finance Townhall, an excerpt from a text about the new methods of calculating Gross Domestic Product (GDP)

  Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.
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