The Accuracy of Government Statistics

Counting it up:

Erwin Diewert, a leading Canadian economist and world-renowned productivity expert, concludes in a new paper slated to be published Wednesday that Statistics Canada has badly underestimated the growth of so-called multifactor productivity as far back as the 1960s. Multifactor productivity is considered a proxy for a country’s innovation performance, encompassing technological change and other efficiencies. It’s a more comprehensive indicator than labour productivity because it incorporates all the factors that contribute to growth – capital, energy, materials, services as well as labour. It’s regarded as the most important source of higher living standards.

So if the government can't even get its numbers right, what makes anyone think they can run a modern economy? Or health care service?  Or education system?

Comments

[nomdeblog]

Productivity is extremely hard to calculate. It is better to simply have faith to step back and let the invisible hand of capitalism do its thing with creative destruction. Therefore get the government out of the economy faster please.

Happy New Year!