Friday, January 22, 2010
Statistophobia
This article talks about how several economic indicators can be misleading especially GDP. It tells us that rather than focusing only on the numbers, we should pay special attention to the trends and patterns in the data.
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This article was really insightful. It brought to mind a point that was made in my international economics class. GDP often times isn't an accurate portrayal of the economic activity of some countries. Take for instance the GDP of some developing countries, especially those that are used heavily by MNCs for production. Even though a product may be produced in a certain country (take iPod for instance) only a very small portion of the actual cost of the item stays in that country.
ReplyDeleteI agree mostly with this article, in fact it is quite well summarized article but at the same time we also need to understand that unexpected changes help us understand trends and patterns. Hence a lookout for the best indicators is essential I suppose.
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