If you can’t fix it

Change the numbers

When inflation started to creep up, the administration “revised” how inflation was calculated.

They can’t bring the numbers up in the economy, so they’re going to “revise” those as well.

Data shift to lift US economy by 3%

The US economy will officially become 3 per cent bigger in July as part of a shake-up that will for the first time see government statistics take into account 21st century components such as film royalties and spending on research and development. …

In an interview with the Financial Times, Brent Moulton, who manages the national accounts at the Bureau of Economic Analysis, said the update is the biggest since computer software was added to the accounts in 1999.

“We are carrying these major changes all the way back in time – which for us means to 1929 – so we are essentially rewriting economic history,” said Mr Moulton.

The changes will affect everything from the measured GDP of different US states to the stability of the inflation measure targeted by the US Federal Reserve. They will force economists to revisit policy debates about everything from corporate profits to the causes of economic growth.

This will go down in July. So watch the numbers in August.

My bet is that this “revision” will get little to no mention when the numbers angle upwards. Those that do mention it will garble the explanation to the point where the layperson couldn’t understand it.

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