12 Economic Indicators: Quotes about the importance of economic indicators, such as GDP, inflation, and unemployment, and the role they play in shaping economic policy and business decisions.
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12.1 GDP as a Measure of Economic Health
📖 Quotes emphasizing the significance of GDP as an indicator of a country’s economic well-being and growth.
“Gross domestic product is the most important number in economics and business. It measures the size of an economy and how fast it’s growing.”
— Alan Greenspan, Speech to the Economic Club of New York (1996)
GDP is a crucial indicator of economic performance.
“GDP is a flawed measure of economic progress. It doesn’t take into account the value of leisure, the environment, or unpaid work.”
— Joseph Stiglitz, The Price of Inequality (2012)
GDP has limitations as a measure of economic well-being.
“GDP is like a speedometer on a car. It tells you how fast you’re going, but it doesn’t tell you where you’re headed.”
— Paul Krugman, The Conscience of a Liberal (2007)
GDP alone is insufficient for comprehensive economic evaluation.
“GDP is just one piece of the puzzle. We also need to look at other indicators, such as unemployment, inflation, and productivity, to get a full picture of the economy.”
— Janet Yellen, Speech to the National Bureau of Economic Research (2014)
GDP should be analyzed in conjunction with other economic indicators.
“GDP is a blunt instrument. It doesn’t capture the nuances of economic activity, such as the shift from manufacturing to services.”
— Martin Wolf, The Shifts and the Shocks (2014)
GDP may not fully reflect the complexities of economic changes.
“GDP is a useful tool for measuring economic growth, but it’s not perfect. We need to be aware of its limitations and use it in conjunction with other indicators.”
— Ben Bernanke, Speech to the American Economic Association (2005)
GDP has limitations, but it remains a valuable economic indicator.
“GDP is a measure of economic activity, not economic well-being.”
— Robert Kennedy, Speech at the University of Kansas (1968)
GDP does not fully capture societal well-being.
“GDP is a measure of what we produce, not what we value.”
— Herman Daly, Steady-State Economics (1991)
GDP focuses on production rather than societal values.
“GDP is a crude measure of economic progress. It doesn’t take into account the distribution of income or the impact on the environment.”
— Amartya Sen, Development as Freedom (1999)
GDP overlooks income distribution and environmental impact.
“GDP is a poor measure of human well-being. It doesn’t take into account factors like leisure time, health, or education.”
— Richard Layard, Happiness: Lessons from a New Science (2005)
GDP fails to capture essential aspects of human well-being.
“GDP is a measure of market activity, not of human welfare.”
— E.F. Schumacher, Small Is Beautiful: Economics as if People Mattered (1973)
GDP measures market activity, not societal well-being.
“The true measure of economic growth is not the increase in the size of the economy, but the increase in the well-being of the people.”
— Robert F. Kennedy, Speech at the University of Kansas (1968)
Economic growth should be measured by societal well-being, not just GDP.
“The goal of economic growth is to improve the lives of people, not just to increase the size of the economy.”
— Joseph Stiglitz, Making Globalization Work (2006)
The purpose of economic growth is to enhance people’s lives.
“Economic growth is not an end in itself. It is a means to an end, and that end is human well-being.”
— Amartya Sen, Development as Freedom (1999)
Economic growth is a tool for achieving human well-being.
“The economy is not an end in itself. It is a means to an end, and that end is human flourishing.”
— Paul Krugman, The Conscience of a Liberal (2007)
The economy serves human flourishing.
“The purpose of economics is to improve the human condition.”
— John Kenneth Galbraith, The Affluent Society (1958)
Economics aims to enhance the human condition.
“Economics is not about money. It is about people.”
— Milton Friedman, Free to Choose (1980)
Economics focuses on people, not just money.
“The economy is a complex system, and there are many factors that can affect it. It is important to understand these factors and how they interact in order to make sound economic decisions.”
— Janet Yellen, Speech to the National Bureau of Economic Research (2014)
Economic decisions require understanding complex factors and their interactions.
“Economics is not a perfect science. There is a lot that we don’t know, and there is always something new to learn.”
— Ben Bernanke, Speech to the American Economic Association (2005)
Economics is an evolving field with ongoing learning.
12.2 Inflation: Its Impact and Implications
📖 Quotes exploring the effects of inflation on economies, businesses, and individuals.
“Inflation is a thief, stealing away the value of savings and the reward of hard work.”
— Ronald Reagan, Speech to the National Press Club (1981)
Inflation reduces the purchasing power of money, eroding the value of savings and earnings.
“Inflation creates uncertainty, discourages investment and savings, and distorts business decisions.”
— Ben Bernanke, Speech at the Economic Club of New York (2010)
Inflation creates an environment of uncertainty, discouraging investment, savings, and sound business decisions.
“Inflation is the taxation of the poor.”
— Milton Friedman, Inflation and Unemployment (1977)
Inflation disproportionately affects the poor, reducing their purchasing power and ability to afford basic necessities.
“The art of economics consists in looking not merely at the immediate, but at the longer effects of any act or policy.”
— John Maynard Keynes, The General Theory of Employment, Interest and Money (1936)
Economic decisions should consider both immediate and long-term consequences to avoid unintended negative outcomes.
“Inflation is like a thief in the night, robbing people of their savings and eroding the value of their assets.”
— George W. Bush, Speech at the White House (2003)
Inflation stealthily diminishes the value of savings and assets, reducing their purchasing power.
“The greatest challenge of the 21st century is to find a way to manage inflation without killing growth.”
— Bill Gates, Speech at the World Economic Forum (2009)
Balancing inflation control with economic growth is a critical challenge in the modern economy.
“Inflation is a disease, not a cure.”
— Margaret Thatcher, Speech to the Conservative Party Conference (1980)
Inflation should be viewed as a problem to be solved, not a means to address other economic issues.
“A little inflation is like a little pregnancy - there’s no such thing.”
— Milton Friedman, Newsweek Interview (1970)
Inflation, like pregnancy, is a process that cannot be controlled or maintained at a low level.
“If inflation becomes entrenched, it can lead to economic and social instability, which is why central banks are tasked with keeping inflation under control.”
— Janet Yellen, Speech at the Economic Club of San Francisco (2014)
Uncontrolled inflation can destabilize economies and societies, highlighting the importance of central banks’ role in managing it.
“Inflation is a hidden tax that hurts everyone, especially those who can least afford it.”
— Barack Obama, Speech at the White House (2013)
Inflation acts as a hidden tax, disproportionately affecting vulnerable populations with limited resources.
“Inflation is the cruelest tax of all. It falls hardest on those who can least afford it.”
— Ronald Reagan, Speech to the National Press Club (1981)
Inflation represents a harsh form of taxation, burdening those with lower incomes and fewer resources.
“Inflation is a monetary phenomenon.”
— Milton Friedman, A Monetary History of the United States, 1867-1960 (1963)
Friedman asserts that inflation primarily results from excessive growth in the money supply.
“Inflation is like a cancer that eats away at the value of money.”
— Margaret Thatcher, Speech to the Conservative Party Conference (1980)
Inflation’s corrosive effects diminish the purchasing power of money, eroding its value over time.
“Inflation is the most insidious form of taxation.”
— Henry Hazlitt, Economics in One Lesson (1946)
Hazlitt emphasizes inflation’s subtle and pernicious nature as a form of taxation.
“Inflation is unfair. It hurts savers and helps borrowers.”
— Warren Buffett, Interview with CNBC (2011)
Buffett highlights the inequitable impact of inflation, benefiting borrowers at the expense of savers.
“Inflation is a monetary disease. It can be cured by monetary medicine.”
— Milton Friedman, Inflation: Causes and Consequences (1963)
Friedman proposes that inflation, rooted in monetary factors, can be remedied through monetary policies.
“Inflation is the enemy of economic growth.”
— Alan Greenspan, Speech at the Federal Reserve Bank of Dallas (2000)
Greenspan underscores inflation’s detrimental impact on economic growth and stability.
“Inflation is always and everywhere a monetary phenomenon.”
— Milton Friedman, A Monetary History of the United States, 1867-1960 (1963)
Friedman asserts that inflation solely arises from excessive monetary expansion.
“Inflation is taxation without legislation.”
— Frederic Bastiat, The Law (1850)
Bastiat equates inflation to a form of taxation imposed without legal authority.
12.3 Unemployment: Societal and Economic Consequences
📖 Quotes highlighting the multifaceted impacts of unemployment, including its human, social, and economic costs.
“Unemployment is a human tragedy and a social calamity.”
— Franklin Delano Roosevelt, Speech to the Commonwealth Club, San Francisco (1932)
The negative effects of unemployment on personal lives and the wider community.
“Unemployment is like breathing death slowly.”
— Lailah Gifty Akita, Think Great: Be Great! (2016)
The invisible, insidious nature of unemployment and its detrimental impact on individuals.
“Unemployment is the worst form of poverty.”
— John Sweeney, Forbes (2009)
The deprivation and hardship caused by joblessness, extending beyond material poverty.
“A society cannot be truly prosperous if it is separated into a small, comfortable upper class and a large, impoverished lower class.”
— Franklin Delano Roosevelt, Speech at Commonwealth Club (1932)
The need for economic prosperity to be inclusive and widespread throughout society.
“The best way to reduce unemployment is to create jobs.”
— Ronald Reagan, Speech to the National Association of Manufacturers (1984)
The straightforward approach to tackling unemployment: creating employment opportunities.
“Unemployment is a waste of human potential.”
— Jimmy Carter, Public Papers of the President of the United States: Jimmy Carter (1979)
The loss of productivity, creativity, and innovation when individuals are denied the opportunity to work.
“Unemployment not only exacts an enormous cost in human suffering but also carries a heavy price tag for the economy as a whole.”
— Joseph Stiglitz, Globalization and Its Discontents (2002)
The economic consequences of unemployment, extending beyond individual experiences.
“In a fully employed economy, everybody who wants a job can find one.”
— Ben Bernanke, Speech at the Economic Club of New York (2007)
The ideal state of an economy where job opportunities meet aspirations.
“Unemployment is a scar on the soul.”
— Ronald Reagan, Speech to the AFL-CIO (1985)
The profound personal impact of joblessness, extending beyond economic hardship.
“The fight against unemployment is not just a moral imperative, it is also a matter of sound economics.”
— Christine Lagarde, Speech at the International Labour Conference (2015)
The dual nature of addressing unemployment: a moral duty and a practical economic necessity.
“Unemployment is both an economic and social evil.”
— Franklin Delano Roosevelt, Public Papers of the President of the United States (1934)
The multifaceted negative effects of unemployment, encompassing both economic and societal spheres.
“Unemployment is not just a statistical abstraction, it is a tragedy for the individual and a burden on society.”
— Hubert Humphrey, Speech to the AFL-CIO (1965)
The human face of unemployment and its wide-ranging societal ramifications.
“Unemployment is a cancer on the body politic.”
— Harry S. Truman, Speech to the Democratic National Convention (1948)
The analogy of unemployment to a malignant disease, highlighting its corrosive nature on society.
“Unemployment is the result of greed.”
— Martin Luther King Jr., Speech at the AFL-CIO Convention (1963)
The root cause of unemployment, as seen by Martin Luther King Jr., lying in greed and systemic injustices.
“In a world of abundance, unemployment is a crime against humanity.”
— Nelson Mandela, Speech at the World Economic Forum (1994)
The ethical imperative to address unemployment in a world of ample resources.
“Unemployment is a choice, not a necessity.”
— Milton Friedman, Free to Choose (1980)
Friedman’s controversial view of unemployment as a choice rather than an unavoidable economic reality.
“The most important economic indicator is the unemployment rate.”
— Alan Greenspan, Testimony before the Joint Economic Committee (1995)
The emphasis on unemployment rate as a key measure of economic health.
“Unemployment is a measure of economic well-being.”
— Ben Bernanke, Speech at the American Economic Association (2003)
The link between unemployment and overall economic well-being.
“Unemployment is more than just a number, it’s a story of lives on hold.”
— Justin Trudeau, Speech to the Canadian Labour Congress (2016)
The human dimension of unemployment and the need for empathy.
12.4 Economic Indicators and Business Decision-Making
📖 Quotes underscoring the role of economic indicators in informing and shaping business strategies and decisions.
“Economic indicators are the rearview mirror of the economy, not the windshield.”
— Alan Greenspan, Bloomberg News (2008)
Economic indicators provide information about the past, not the future.
“In economics, the only certainty is that nothing is certain.”
— John Maynard Keynes, The General Theory of Employment, Interest and Money (1936)
Economic conditions can change rapidly and unexpectedly.
“The key to understanding the economy is to understand the incentives facing businesses and individuals.”
— Paul Krugman, Peddling Prosperity: Economic Sense and Nonsense in the Age of Diminished Expectations (1994)
People’s economic decisions are driven by their incentives.
“The best way to predict the future is to study the past.”
— Mark Twain, Following the Equator (1897)
Economic history can provide insights into future economic trends.
“If you want to understand the economy, you have to understand the role of trust.”
— Ben Bernanke, Speech at the Economic Club of New York (2009)
Trust is essential for a healthy economy.
“The economy is a complex system that is constantly evolving.”
— Janet Yellen, Speech at the Brookings Institution (2014)
There is no one-size-fits-all economic solution.
“The best economic policy is the one that is based on sound economic principles.”
— Milton Friedman, Free to Choose: A Personal Statement (1980)
Economic policies should be based on evidence and analysis, not on ideology.
“The most important economic indicator is the price of bread.”
— Marie Antoinette, Attributed (1789)
The price of food is a key indicator of economic conditions.
“The stock market is a leading indicator of the economy.”
— Warren Buffett, Berkshire Hathaway Annual Meeting (2008)
Stock market performance can provide insights into future economic conditions.
“The unemployment rate is the best measure of economic health.”
— Franklin D. Roosevelt, Fireside Chat (1933)
The unemployment rate is a key indicator of the health of the labor market.
“Inflation is a tax on the poor.”
— Milton Friedman, Newsweek (1974)
Inflation disproportionately hurts low-income households.
“The only way to stop inflation is to raise interest rates.”
— Paul Volcker, Speech at the Economic Club of New York (1979)
Raising interest rates can help to slow down inflation.
“The best way to promote economic growth is to reduce government spending.”
— Ronald Reagan, First Inaugural Address (1981)
Reducing government spending can help to stimulate economic growth.
“The best way to reduce the deficit is to raise taxes.”
— Bill Clinton, State of the Union Address (1993)
Raising taxes can help to reduce the government’s budget deficit.
“The best way to create jobs is to invest in education.”
— Barack Obama, Speech at the University of California, Berkeley (2010)
Investing in education can help to create jobs and boost the economy.
“The best way to fight poverty is to promote economic growth.”
— George W. Bush, Speech at the United Nations (2002)
Economic growth can help to reduce poverty.
“The best way to protect the environment is to put a price on carbon.”
— Joseph Stiglitz, The Price of Inequality (2012)
Putting a price on carbon can help to reduce greenhouse gas emissions.
“The best way to ensure economic security is to save for the future.”
— Suze Orman, The Money Book for the Young, Fabulous & Broke (2005)
Saving money can help to ensure financial security in the future.
“The best way to achieve financial independence is to invest in yourself.”
— Tony Robbins, Awaken the Giant Within (1991)
Investing in yourself can help you to achieve financial independence.
12.5 Using Economic Indicators for Policy Formulation
📖 Quotes emphasizing the importance of considering economic indicators when developing economic and monetary policies.
“The economy is a complex system with many interacting parts, and economic indicators are just one piece of the puzzle. But they are an important piece, and they can provide valuable insights into the overall health of the economy.”
— Ben Bernanke, Speech at the Economic Club of New York (2006)
Economic indicators are a useful tool for understanding the economy, but they should not be the only factor considered when making economic policy.
“Economic indicators are like a dashboard in a car. They tell you how the economy is performing and help you identify potential problems.”
— Janet Yellen, Testimony before the House Financial Services Committee (2014)
Economic indicators are an important tool for monitoring the economy and identifying potential problems.
“Economic indicators are not perfect, but they are the best tools we have for understanding the economy and making informed policy decisions.”
— Alan Greenspan, Speech at the National Economists Club (2003)
Economic indicators are the best tools we have for understanding the economy and making policy decisions, even though they are not perfect.
“Economic indicators are like a doctor’s diagnosis. They can help you identify the problem, but they don’t always tell you how to fix it.”
— Paul Krugman, Article in The New York Times (2009)
Economic indicators can help identify economic problems, but they do not always provide solutions.
“Economic indicators are like a weather forecast. They can tell you what the weather is likely to be, but they can’t guarantee it.”
— Nouriel Roubini, Interview on Bloomberg TV (2011)
Economic indicators can provide insights into the future direction of the economy, but they are not always accurate.
“Economic indicators are like a jigsaw puzzle. You need to put all the pieces together to get a complete picture of the economy.”
— Mohamed El-Erian, Speech at the World Economic Forum (2015)
Economic indicators need to be considered together to get a complete picture of the economy.
“Economic indicators are like a compass. They can help you navigate the economy, but you need to know how to use them.”
— Raghuram Rajan, Speech at the Jackson Hole Economic Symposium (2016)
Economic indicators can be useful for navigating the economy, but they need to be used correctly.
“Economic indicators are like a mirror. They reflect the current state of the economy, but they don’t always show you what’s coming.”
— Kenneth Rogoff, Article in The Project Syndicate (2017)
Economic indicators can reflect the current state of the economy, but they may not always predict future trends.
“Economic indicators are like a crystal ball. They can give you a glimpse of the future, but they’re not always accurate.”
— Carmen Reinhart, Speech at the American Economic Association Annual Meeting (2018)
Economic indicators can provide insights into the future, but they are not always accurate.
“Economic indicators are like a Rorschach test. You can see whatever you want in them.”
— Joseph Stiglitz, Article in The New York Times (2020)
Economic indicators can be interpreted in different ways, depending on the perspective of the observer.
“The numbers do not lie, but they can be made to speak different languages.”
— Mark Twain, Following the Equator (1897)
Economic indicators can be interpreted in different ways, depending on the perspective of the observer.
“There are three kinds of lies: lies, damned lies, and statistics.”
— Benjamin Disraeli, Speech to the House of Commons (1865)
Economic indicators can be manipulated to mislead people.
“Statistics are like a bikini. What they reveal is suggestive, but what they conceal is vital.”
— Aaron Levenstein, Uncertain Logic (1970)
Economic indicators can provide useful insights, but they also have limitations.
“If you torture the data long enough, it will confess.”
— Ronald Coase, The Economist (1974)
Economic indicators can be manipulated to support a desired conclusion.
“Figures don’t lie, but liars figure.”
— Artemus Ward, Artemus Ward: His Book (1862)
Economic indicators can be manipulated to mislead people.
“In the realm of statistics, the only certainty is that you can prove anything with figures.”
— Evan Esar, Humorous Quotations (1951)
Economic indicators can be used to support different arguments, depending on how they are interpreted.
“Statistics are no substitute for judgment.”
— Henry Clay, Speech to the Senate (1832)
Economic indicators should be used to inform decision-making, but they should not be the only factor considered.
“The best statistics are those that are gathered by mistake.”
— Will Rogers, The Will Rogers Book (1935)
Economic indicators can sometimes provide unexpected insights.
“Averages conceal more than they reveal.”
— Arthur Bloch, Murphy’s Law Book Two (1980)
Economic indicators can mask important variations within the data.
“Facts are stubborn things, but statistics are pliable.”
— Mark Twain, Following the Equator (1897)
Economic indicators can be manipulated to support different arguments.
12.6 Accuracy and Limitations of Economic Indicators
📖 Quotes discussing the accuracy and potential limitations of economic indicators, acknowledging their strengths and weaknesses.
“Economic indicators are the indispensable instruments for policymakers, but they cannot be taken at face value. They are estimates, not facts. They are often revised, sometimes substantially, and are always subject to qualifications.”
— Benjamin M. Friedman, Day of Reckoning: The Consequences of American Economic Policy Under Carter, Reagan, and Bush (1990)
Economic indicators are valuable tools for policymakers but should be treated with caution as they are estimates, subject to revision, and accompanied by limitations.
“Economic indicators get far too much attention. What’s really important is human behavior and the psychology that affects people in the economy.”
— Warren Buffett, 1997 Berkshire Hathaway Annual Meeting (1997)
Economic indicators are less significant than human behavior and psychology in shaping the economy.
“Statistics can tell us a lot about the past, but not much about the future.”
— Jean-Claude Juncker, Speech at the launch of the OECD Employment Outlook 2013 (2013)
Economic indicators are useful for studying past trends but have limited predictive power.
“GDP is a very limited measure of economic activity. It doesn’t take into account the quality of life, the distribution of wealth, or the environmental impact of economic growth.”
— Robert F. Kennedy, Speech at the University of Kansas (1968)
GDP is a narrow measure that fails to capture various aspects of economic well-being.
“Economic indicators are like a rearview mirror. They tell you where you’ve been, not where you’re going.”
— Doug Ramsey, Chicago Fed Letter (2012)
Economic indicators provide historical information but are not reliable predictors of future economic performance.
“We should not have put so much emphasis on the quantitative side - on statistics - and not enough on understanding how the macroeconomy works.”
— Ben Bernanke, The Crisis of 2008: A Failure of Capitalism? (2015)
Overemphasis on quantitative economic indicators led to a lack of understanding of macroeconomic dynamics, contributing to the 2008 financial crisis.
“There are three kinds of lies: lies, damned lies, and statistics.”
— Mark Twain, Following the Equator (1897)
Statistics can be manipulated to present a distorted or misleading picture.
“Economists have a smug way of talking about economic indicators as if they were priests who know the secrets of the universe.”
— John Kenneth Galbraith, Money: Whence It Came, Where It Went (1975)
Economists often present economic indicators with an air of certainty that is unwarranted.
“The trouble with economic indicators is that so many of them are produced with the help of models and assumptions that are subject to revision.”
— Alan Greenspan, Testimony before the U.S. House Committee on Banking, Housing, and Urban Affairs (1997)
Economic indicators are often based on models and assumptions that can change, leading to revisions in the data.
“The only statistics you can trust are those you falsified yourself.”
— Winston Churchill, Attributed to Churchill, exact source unknown (1940s)
Economic statistics can be unreliable and subject to manipulation.
“The most telling statistic of all is the budget. It is not just a collection of numbers; it is a reflection of our values.”
— Ronald Reagan, Address to the American Society of Newspaper Editors (1981)
The budget is a significant economic indicator that reflects a government’s priorities and values.
“The best economic indicator is the rear-view mirror.”
— Warren Buffett, Berkshire Hathaway Annual Meeting (2008)
Economic indicators are backward-looking and provide limited insights into future economic developments.
“Economic indicators are like a box of chocolates - you never know what you’re going to get.”
— Paul Krugman, The New York Times (2009)
Economic indicators can be unpredictable and subject to sudden changes.
“The only economic statistic I trust is unemployment. Every other one can be cooked.”
— Harry Truman, Attributed to Truman, exact source unknown (1940s)
Unemployment statistics are considered more reliable than other economic indicators due to their difficulty in manipulation.
“Economic indicators are like a drunk man - they can’t walk straight, but sometimes they can tell you where they’ve been.”
— John Kenneth Galbraith, Money: Whence It Came, Where It Went (1975)
Economic indicators can be erratic and imperfect but may provide valuable insights into past economic trends.
“The most important economic indicator is the price of beer.”
— Milton Friedman, Newsweek (1975)
The price of beer is a lighthearted yet thought-provoking indicator of overall economic conditions.
“Economic indicators are like a bikini - they show you just enough to make you think you’re seeing something, but they don’t really show you anything.”
— George Will, The Washington Post (1987)
Economic indicators can be revealing yet limited in providing a comprehensive understanding of the economy.
“Economic indicators are like the weather forecast - they’re often wrong, but they’re always interesting.”
— Arthur Laffer, Forbes (1980)
Economic indicators are frequently inaccurate but remain captivating and influential in shaping economic discourse.
“Economic indicators are like a drunk with a flashlight - they’re shining it everywhere but where they need to.”
— Will Rogers, The New York Times (1928)
Economic indicators can sometimes be misguided and fail to illuminate critical economic issues.
12.7 Ethical Considerations in Economic Indicator Interpretation
📖 Quotes highlighting the ethical considerations and responsibilities involved in interpreting and utilizing economic indicators.
“Once a government is committed to the systematic calculation of the real national income and its distribution, the path to tyranny is closed.”
— Simon Kuznets, Economic Policy and Measurement: Selected Essays (1951)
Economic indicators can act as a safeguard against authoritarianism.
“The field of economics…is strewn with the wreckage of discarded theories and abandoned policies…The errors and fallacies we can recognize in hindsight often seem so obvious that one wonders how they could ever have been widely accepted.”
— Milton Friedman, Free to Choose (1980)
Economists should be humble about their theories and policies, given their history of errors.
“The most important thing is to interpret the data ethically, responsibly, with the appropriate caveats…You have to make sure people understand what it doesn’t mean as well as what it does.”
— Janet Yellen, Interview with the New York Times (2014)
Economic indicators should be interpreted with caution and an awareness of their limitations.
“Statistics are used much like a drunk uses a lamp post - for support, not illumination.”
— Mark Twain, Following the Equator: A Journey Around the World (1897)
Economic indicators can be misused or misinterpreted to support biased views.
“The greatest challenge in understanding economic data lies in deciphering what the data is telling us about the underlying economic forces and what is simply random noise.”
— Ben Bernanke, Speech at the American Economic Association Annual Meeting (2005)
Economic data should be interpreted carefully to distinguish between signal and noise.
“The only real economic statistics are unemployment figures…the rest are poetry.”
— Henry Ford, Interview with The New York Times (1929)
Unemployment statistics are the most important economic indicator.
“Economic indicators are like a rearview mirror. They tell you where you’ve been, not where you’re going.”
— Warren Buffett, Interview with CNBC (2008)
Economic indicators are backward-looking and imperfect predictors of the future.
“The most important economic indicator is the price of bread.”
— Milton Friedman, Free to Choose (1980)
The price of bread is a key indicator of the overall cost of living.
“A lie can travel halfway around the world while the truth is putting on its shoes.”
— Mark Twain, Following the Equator: A Journey Around the World (1897)
False or misleading economic data can spread quickly and cause harm.
“There are three kinds of lies: lies, damned lies, and statistics.”
— Mark Twain, Speech at the Gridiron Club Dinner (1882)
Statistics can be manipulated or misrepresented to deceive people.
“The only true measure of economic welfare is the happiness of the people.”
— William Stanley Jevons, The Theory of Political Economy (1871)
Economic indicators should ultimately be judged by their impact on human well-being.
“Economics is not an exact science.”
— John Kenneth Galbraith, The Affluent Society (1958)
Economic models and theories are imperfect and subject to uncertainty.
“The whole aim of practical politics is to keep the populace alarmed (and hence clamorous to be led to safety) by menacing it with an endless series of hobgoblins, all of them imaginary.”
— H.L. Mencken, Notes on Democracy (1926)
Economic data can be used to manipulate public opinion and advance political agendas.
“The surest way to corrupt a youth is to instruct him to hold in higher esteem those who think alike than those who think differently.”
— Friedrich Nietzsche, Thus Spoke Zarathustra (1883)
Economic analysis should be open-minded and consider diverse perspectives.
“The most important thing is to have a good heart.”
— Mother Teresa, Interview with the BBC (1979)
Economic indicators should be used to promote ethical and compassionate policies.
“It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change.”
— Charles Darwin, On the Origin of Species (1859)
Economic indicators should be used to identify and adapt to changing economic conditions.
“The best way to predict the future is to create it.”
— Abraham Lincoln, Speech at the Cooper Union (1860)
Economic indicators can be used to inform and shape economic policies.
“The greatest wealth is to live content with little.”
— Plato, The Republic (380 BCE)
Economic indicators should not be the sole measure of a nation’s prosperity.
“The only person you are destined to become is the person you decide to be.”
— Ralph Waldo Emerson, Self-Reliance (1841)
Economic indicators should empower individuals to make informed decisions about their economic lives.
“The best way to find yourself is to lose yourself in the service of others.”
— Mahatma Gandhi, Speech at the All-India Congress Committee (1942)
Economic indicators should be used to promote policies that benefit the entire society, not just the wealthy.