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unixronin: Galen the technomage, from Babylon 5: Crusade (Default)
Unixronin

December 2012

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Tuesday, August 19th, 2008 10:52 am

Commentary:  Someone elsewhere commented that this needs to be a log scale, and is meaningless if it's not in adjusted dollars.

I disagree.  Adjusted dollars or not, anyone can see that this is blip, blip, blip, blip, blip, HOLY FUCK.  Sure, the dollar has tanked. But it hasn't tanked THAT much.  The dollar's lost maybe half its 1985 value, not 98% of it, which is the sort of depreciation that would be required to bring that vertical spike into scale with the other blips.

As for a log scale?  On a graph like this, the only thing a log scale would serve is to hide the data and make it look much, much less significant.  Most people do not think in terms of log scales (hell, most people don't understand what a log scale is).  If you're releasing log-scaled graphs for the public at large, you're doing it to mislead them and make the spikes look as much smaller as you can get away with.

Tuesday, August 19th, 2008 03:47 pm (UTC)
A meaningful version would to plot the total borrowing vs. the GNP over time. In this way, it is self normalizing/correcting. No need for log or semi-log plots, either.
Tuesday, August 19th, 2008 06:45 pm (UTC)
The one problem with that is that, particularly these days, the GNP is a poorly-defined number that varies widely according to what assumptions you make and what parameters you use to define it. It's sort of the Humpty Dumpty of economics — "A [number] means what I want it to mean; nothing more, and nothing less." For example, depending on how you define the GNP, that borrowing and the economic activity surrounding it can appear to be part of the GNP.
Wednesday, August 20th, 2008 02:17 am (UTC)
i call shenanigans.
is GNP this year 50 times what it was last year?