The 2nd Quarter 2008 GDP Numbers: At least two (and a half) blogs are calling ‘Bullshit!’

You’re reading the half-blog.

Mish and Naked Capitalism both have posts about the GDP numbers released for 2Q.  Largely overlapping, but Mish’s is significantly shorter (Naked Capitalism is a bit more for the hardcore, in my opinion).  Both are equally cynical about its accuracy or relevance.

Mish criticizes the value of the measurements, period.  Naked Capitalism has a very poignant post title, certainly, about the broader implications of what (if their criticism proves correct) is little more than domestic propaganda.

I actually felt fairly similarly towards the stimulus package(s).  It seems to me like a clear non-solution to an economic problem, but a great way of heading off a political problem.  If they can target the technical basis for a recession, and be able to argue there was no (technically) recession at the tail end of Bush’s administration, does that put more pressure on Obama’s administration to continue the fudge?

Broader issue: The importance of statistics, taking away from the importance of what is supposedly BEING measured, and the recognition by those whose performance is supposedly being measured.  Why teach a student, with all their individual tendencies and idiosyncrasies, when you can teach a test, standardized and the same every time it’s given?  Teaching students is HARD.  Why take the unpopular, painful, and near-impossible procedures to try to head off a recession (if you’re still making money), when you can have people stop describing it as a “recession”, and let the next sucker deal with the ethical issues?  Managing national economies is HARD.

… and the cow goes moo