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He’ll be a neoliberal next

Well, quite:

GDP is also CRAP. It includes completely made-up numbers, like the annual rental value of owner-occupied properties as if rent was paid on them, which it isn’t. And as Eurostat once told me, there is massive denial on the size of shadow economies within GDP data.

This is the mistake almost all economists always make. Not only are they not good at maths, but much worse than that they never seem to appreciate that they spend most of their time working on CRAP data to produce meaningless outcomes they then claim to be reliable. They aren’t. Bluntly, those economists are no better than unthinking technicians when working in this way.

That’s what Hayek and us neoliberals say. The data’s shit, it’ll never be any better, therefore accurate management of the economy is impossible because the data’s shit.

The El Tuberoso could actually follow the logic of his own insistence then he too would be a neoliberal.

5 thoughts on “He’ll be a neoliberal next”

  1. Candidly, SHOUTING and using “bluntly” instead of “candidly” don’t impress me much. The SHOUTING seems to be a further milestone on the road to the padded cell, though.

  2. GDP is like IQ – they measure what they measure. The misinterpretation of what they mean by idiots is down to the idiots, not the measurements.

  3. He isn’t shouting, he’s using an acronym.

    Some time ago I created the acronym CRAP to describe most data. It stands for ‘completely rubbish approximations’ to the truth

    Although it isn’t technically an acronym.
    He’s just trying to be clever in the same manner as a five year old.
    “Look i made a swear!”

    Virtually every set of accounts is, for example, CRAP. The accounts of large companies are, I suggest, complete works of fiction. That’s because there is no company that undertakes the transactions that those financial statements report.

    That’s a hell of a claim there, Richard… Care to cite any examples?

    It’s easy to criticise the data for GDP. However, where is the suggested alternative? Sitting and carping about it isn’t helpful.

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