
If you want to avoid being a hack, or to put it more kindly, how to know that you are rationalizing, let me provide some basic advice. This is not a catch-all hack prevention technique, but it can help you out in very specific kinds of discussions. Specifically, I am talking about the deployment of standard, long-established numbers.
If a certain metric has been used consistently for years, but then the latest figure is unflattering for your position, and your reaction is to decide that this time the number is wrong because of whatever hand-wavery you want to deploy, stop and take a deep breath. Remember that when the number was in your favor, you wouldn’t try and change it.
The latest example is the GDP figure. People who don’t like the fact that Q1 shrank by 0.3% have decided that, all of a sudden, the way we calculate GDP is wrong.
But, of course, a lot of Trump boosters fell for hackishness and have been loudly proclaiming that, really, growth was positive in the 3%-ish range.
Here’s Trade Warrior Peter Navarro rationalizing away the negative effects of his preferred set of policies.
Here’s the deal: the way GDP is calculated hasn’t changed. So, taken as a number in isolation, you cannot, in good faith, say that we actually grew by 3%.
That is what a hack does.
I am not saying that the number won’t be revised. I am not saying that we are definitely heading for a recession. But I am saying that the official number is -0.3% and that Navarro would not be rationalizing it away if the official number had been, in fact, 3.0%.
There is, without any doubt, a lot going on right now, but the fact remains that the overall effects of the Trump Trade War have been negative and are almost certainly going to continue to be negative.
And anyone who wants to tell you that down is actually up is a hack.
Don’t be a hack.
I will leave you all with this.
Plus, for additional reading on the subject of GDP calculations, see Noah Smith: Why do econ journalists keep making this basic mistake?
And a fun fact: the last 3 cases of shrinkage in quarterly GDP in the US have happened under a Trump administration. While one can rightly blame the pandemic for the last two, the current one was wholly done by choice. It was totally avoidable. As Paul Krugman notes, Trump inherited a good economy, and where we are now and where we are headed are fully Trump’s fault.









