segunda-feira, 28 de setembro de 2020

Miracles of the economic faith XII - The percentual statistics

The miracle of percentage statistics goes far beyond the popular idea of eating half chicken on average, when in fact your neighbor eats the whole chicken and you, at most, smell the roast. Imagine, for instance, that the quarterly employment rate falls 20%, but your government, trying to keep you calm and hopeful, assures you that in the next quarter the employment will grow 25%. The miracle rests in the incidence of the percentage: if there were one million employed this quarter and 20% got unemployed, then only 800,000 employees remained; in the next quarter employment will rise 25% (as government "magicians" promise), plus 200 000 employees therefore (the incidence of percentage is now 800 000 thousand and not one million!), which means that there will be one million employed in the next semester - employment will remain exactly the same, but the miracle is that it seems not!

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