Campbell’s Law: Essential Economics Knowledge

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The most intriguing find of my economic research is one of two laws that guarantee socialism will always fail: Campbell’s Law.

Campbell’s law

“The more any quantitative social indicator is used for social decision-making,” he wrote, “the more subject it will be to corruption pressures and the more apt it will be to distort and corrupt the social processes it is intended to monitor.”

Consider GDP, unemployment report, inflation and college degrees.

GDP

The GDP is directly increased by increased federal deficit spending, since federal spending is created to spend immediately.  So the federal gov’t is continuously increasing their deficit spending any time they fear the the economy is falling.

Cutting the deficit will directly cut the GDP measure they have chosen.  So the deficit is a hand grenade with the pin pulled on it.  Whoever slows the deficit will see the explosion when the GDP falls with it.

And increasing the deficit increases the explosion size.

It is interesting to note Carter, Bush Sr., Clinton, and W. Bush all passed on economic shrinkage to the other party when their term ended.   And they all reduced deficits toward the ends of their terms.   When deficits fall, GDP falls.

Cambell’s Law for Unemployment

The unemployment number now subtracts out “not in the workforce” citizens to make it look far far better, and trending better, while the EMPLOYMENT chart from BLS is still not showing any improvement for 5 years.

Also note black employment fell faster after the Obama “stimulus” program started, with no protest from their constituency.

Cambell’s Law for Inflation

John Williams of ShadowStats has proven they changed the basket of goods used to weight inflation, so that inflation now looks far lower then before.  It reveals it is 10% lower than the Clinton years, almost 15% lower than the Reagan years.

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Cambell’s Law for College degrees

They’ve watered down college and over-expanded loans on the assumption that every will life better simply by adding more college students.   The “degree” claim is progressively diluted, and the leaders are pretending to be unaware the market can only absorb so many degreed workers.

High School student routinely re-tack high school level course due to poor high school preparation.

Bad Instruments Means Guaranteed Failure

Any good process control person knows if you’re instrumentation readings are corrupted, any fixes to the system will be based on faulty data and measured with faulty readings.  Thus, unpredictable and unreliable.  You can’t fix won’t you can’t measure is broken, and you can’t tell if a fix worked if the measures are in error.


John D. Lofgren

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John Lofgren spent over 10 years researching US economic history, identifying best practices, and exposing findings in public forums in researching his well reviewed book, "Atlas Shouts". John earned degrees from the University of Florida and the University of Central Florida. A computer engineer, he holds five patents and has thirty years of design experience in electronics and design automation. He is also an accomplished lead singer and guitarist in a Motown/Classic Rock band.

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