Thursday, March 12, 2009

The sky is falling, part II: Lies, Damned Lies, and Statistics

I read one of the most ridiculous headlines ever today.

A story from Reuters ran with this heading:

45 percent of world’s wealth destroyed: Blackstone CEO

Really???

Has 45% of the world’s physical assets suddenly been launched into space, never to be seen again? Have people suddenly become 45% less able to think and create for themselves?

Of course not!

Only artificially-set numbers on paper have changed. The inherent value of my “stuff” and my ability to create wealth has not changed one iota.

Unless I believe it to be true.

The great writer Mark Twain put it very well. As he said, “There are three types of lies: lies, damned lies, and statistics.”

Well said!

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