Lies, Damned Lies and Statistics: Q3 GDP growth

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This was the title of the first report I wrote for the Marblehead Reporter back in 2008.*

The phrase came to my mind when I saw these two headlines on Thursday:

“US GDP surged a record 33% in the 3rd quarter as the economy reopened, roughly double the next-biggest jump.” (Business Insider)

“U.S. GDP booms at 33.1% rate in Q3, better than expected” (CNBC)

Wow! What amazing growth! As CNBC says – and they are financial experts – the economy is booming!

But wait a minute….. 22.6 million people were claiming unemployment benefits when the Government last reported numbers on October 10, compared with just 1.4 million a year ago. How does that square with a booming economy? (more…)