Economist challenges government data

"""Oakland economist John Williams doesn't seem like the kind of guy to pick fights with the government.

He's slow moving and soft spoken, conservative in politics and personal habits, a pale and portly 59-year-old who favors Oxford shirts, Rep ties and sensible shoes. Williams is the sort who pays his taxes on time, waits when the signal says "Don't Walk" and snaps to attention when the national anthem is played.

But don't be fooled. The New Jersey native is leading a one-man crusade to expose official economic data as grossly misleading at best and, at worst, a pack of lies.

His Shadow Government Statistics Web site (shadowstats.com) has become a magnet for those convinced that official data put a happy-talk gloss on the nation's economy. The growing popularity of the site, which costs subscribers $175 a year, is testimony to the deep suspicion many Americans harbor about government information as the economy falls into a swoon.

"There's something wrong with the numbers," said ShadowStats subscriber Harry Seitz, a retiree in Davie, Fla. "Over the years, (Williams) has essentially been proven correct."

By Williams' estimation, the government's calculation that unemployment was 5 percent in April and that inflation was 4 percent and economic growth 2 percent over the last year, is fantasy. It might even be disinformation.

An update e-mailed to ShadowStats subscribers at the beginning of the month warned darkly that "GDP (gross domestic product) and Jobs Data Appear Rigged" and "Despite Manipulated Data, the Recession Deepens."

By his reckoning, the economy shrank 2.5 percent in the year that ended in March, unemployment is really 13 percent and year-over-year inflation is 7.5 percent. """ [more]

http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2008/05/25/BU6K10JTEF.DTL


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