Friday, October 30, 2009

Lies, Damn Lies, and Statistics

The Obama administration said Friday that the government's fiscal stimulus program has helped create or save 640,329 jobs as the result of the of the $787 billion stimulus package. The administration says that puts it on track to meet its goal of creating or saving 3.5 million jobs by the end of 2010, when the two-year stimulus has run its course. (Does anyone really believe that will happen?)

"One can search economic textbooks forever without finding a concept called "jobs saved." It doesn't exist for good reason: how can anyone know that his or her job has been saved?" Allan Meltzer, economics professor at Carnegie Mellon University, wrote in a memo. "The Administration can make up any number it pleases. The number has no meaning."

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