Why We Need Better Statistic and Economic Education

As I watch the relentless movement of the novel coronavirus and COVID-19 around the world and listen to the many simply inaccurate (some dangerously so) remarks by political leaders, I am beginning to think this situation underscores a serious hole in our educational system. Too many people lack the basic grasp of economics and statistics necessary to gauge for themselves what is factual and not. Among the missing bits are:

• The difference between linear and exponential functions;
• How linear and logarithmic scales show the same data in different ways leading to different conclusions (see worldometers.info for an illustration).
• Why today’s case day reflect what happened two weeks ago rather than yesterday; and
• Why demand-side economic interventions are useless when stores and restaurants are closed.

Extra credit would come in the form of an analysis of why reports of deaths per diagnosed case from a particular disease may not be a true reflection of the pandemic’s reach. For more on this, see this item in the Federal Reserve Bank of St. Louis “On the Economy” blog.