The Importance of Facts
Posted in Globalisation, Liberalism, Politics on December 30th, 2006 No Comments »
Anyone reading this blog over a long period will be aware that I have always been opposed to the War in Iraq, and perhaps that I am deeply unhappy with the assumptions of our capitalist systems, with their introspective politics and their global reach. I think that in a world of gross injustice and suffering, it is the richest nations that have the most to be ashamed about.
But when we analyze the problem, we need to beware the spin of people we agree with just as much as the spin of those we oppose. Indeed moreso, as we are inclined to challenge those we disagree with, but to allow spin to pass unchallenged by those with whom we agree.
So I was reading a post on the AcrimoniouZ blog, attempting to disect all that is wrong in American politics (and lay the blame for it squarely at the feet of George Bush), when I read this:
Today more than half of the top 100 economies of the world are corporations.
http://acrimoniouz.blogspot.com/2006/12/corporate-america-has-taken-control.html
That claim is bogus.
Firstly I am deeply suspicious of any measure of sizes of economies that appears to be double counting. If we are to count the size of, say, Microsoft corporation and treat this as a seperate economy, then shouldn’t we subtract that size from the US economy in which its profits are accounted? And if we did this for all such corporations, how much would be left to actually count in the national economies? You would clearly expect corporations to be the largest economic units, because you have deliberately broken down national economies into smaller units.
But the other reason this is bogus is because of the way we count the size of an economy. National economies are accounted by GDP. Thus the US has the largest national GDP in the world, followed by Japan, Germany, the UK and France (although if you treat the EU as a single entity, that is the largest economy in the world).
But what does GDP measure? perhaps a little simplistically, it is a measure of the value added by an economy. If we were to find a similar measure of value added by corporations, then we would not be using the figures that people have been using to report them in the top 100 economies. We would not use annual turnover of the corporations, or capitalisation, but rather a measure of added value - i.e. profits.
By this measure these corporations are no longer of equal size to national economies in the top 100 economies of the world.
That does not mean we should not be concerned about how policy in our nations is being shaped time and again for the benefit of corporations, rather than for the people.
But facts matter, and if we are to taken seriously when we have a point to make; if we are to persuade those who disagree with us of our point of view, then we must understand and be careful about facts.
This is why Noam Chomsky commands respect, even from people who disagree with him. Because he is so careful to accumulate, check and document facts.
But we should not leave that to the professionals. If you find yourself agreeing with everything someone says (be it on a blog, in a speech, on television or whatever), then be warned - you may be allowing spin to pass as fact.