Friday, November 7, 2014

The Utility of Macro-Economic Statistics

In this piece on the Cobden Center website Dr. Frank Shostak explains why dubious government economic statistics are meaningless in the free market:

"What possible use can an entrepreneur make out of information about the rate of growth in gross domestic product (GDP)? How can the information that GDP rose by 4% help an entrepreneur make a profit? Or what possible use can be made out of data showing that the national balance of payments has moved into a deficit? Or what use can an entrepreneur make out of information about the level of employment or the general price level?"

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