Economic Idiot Award II

The second in our highly prestigious Economic Idiot Awards. I’m afraid that I don’t know whether the award should actually be offered to Mark Townsend of The Observer, or to Action Aid whose report he was commenting on. As an example of pure economic illiteracy, an inability to grasp even the most basic of facts about the world, this does take some beating:

The profits of Wal-Mart,
which owns supermarket chain Asda, are, for example, bigger than the
economies of Mozambique and Ghana combined.

Interesting little fact eh?

WalMart profits for 2004….$8.9 billion.

Size of the economy of Ghana….$41.25 billion at Market Exchange Rates (MER) or $37.9 billion at the more correct Purchasing Power Parity (PPP) rate.

Mozambique? $19.5 billion MER and $15.1 PPP.

Well, yes, a worthy winner I think. This week’s prize is a free subscription to www.nationmaster.com where one can learn all sorts of interesting numbers.

11 responses

  1. Sadly enough, what he might be after is another comparison that is all too common. The comparison between a corporation’s sales and the GDP of a country.
    He would be right though if he compared the value added of Wal-Marts and the combined GDP och Mozambique and Ghana. Not that I see why such a comparison would be interesting in the first place.
    Tim adds: Well, we know that a corporation’s sales are not the same as GDP (and if it were, WalMart would be bigger than all of sub-saharan Africa, minus S Africa itself) but the value added depends on how you define it. Is it just profits? Or does one include wages as well? That’s one question I still don’t know the answer to although I’ve asked it a few times.

  2. Naming and shaming

    Tim Worstall is again terrorising (or should that be terrifying?) the economic journalist community, with his second Economic Idiot Award. Naming and shaming is all very well, but will you (or I) be next?

  3. Most Students in My University Would Win This One

    Here’s one award that I have absolutely no intention of winning. Though, I must say the winner sure did deserve

  4. For clarity,
    GDP = Consumer Spending
    + Business and Residential Investment
    + Government Spending
    – Trade Deficit
    I’d say the best comparison between the economic state of a country and the economic state of a country is the comparison of growth of overall country wealth with corporate profits.
    Moreover, the comparison of WallMart with sub-Saharan African countries says much more about the incompetance of those countries’ economic policies rather than the success of WallMart.

  5. Dog food politics

    Usually we like to spend our Monday mornings on the blog dissecting the perverse tastes of Observer readers as revealed by our hi-tech real time website traffic data click-o-meter. But today it is broken. Slaps real time website traffic data click-o-me…

  6. Dog food politics

    Usually we like to spend our Monday mornings on the blog dissecting the perverse tastes of Observer readers as revealed by our hi-tech real time website traffic data click-o-meter. But today it is broken. Slaps real time website traffic data click-o-me…

  7. http://www.nationmaster.com/graph-T/peo_pop_in_201
    Which country is missing, or does Nationmaster know about some impending disaster in East Asia, 2014?

  8. Economic Idiot Award II

    Tim has the second award ready, but isn’t sure who it should actually go to….

  9. A Contender for Economic Idiot

    I think Kevin Drum would make a fine nominee for Tim Worstall’s Economic Idiot Award. Kevin’s latest post looks at health care and decides that we need the French system. But is the French system all that much better? Now the French system does seem pr…

  10. Economic Idiot Award II

    Tim has the second award ready, but isn’t sure who it should actually go to….

  11. tim worstall’s economic idiot award

    Tim Worstall has invented a great idea – the Economic Idiot Award. He nominates a column by Mark Townsend in the Observer….

Leave a Reply

Discover more from Tim Worstall

Subscribe now to keep reading and get access to the full archive.

Continue reading