Beat the Press

Dean Baker's commentary on economic reporting

4/10/2006

Getting Numbers Right: An Essential Part of Good Reporting

Having escaped from ten years of doing the Economic Reporting Review (ERR), I’m beginning “Beat the Press,” with the single topic that took up the most cyberspace in ERR -- putting numbers in context. The point is that it is the reporter’s responsibility to use numbers in ways that make their articles as informative as possible to the reader. This means putting them in a context that will make them meaningful to the typical reader.

For example, reporting that a new federal transportation bill will cost $285 billion over the next six years (approximately the actual expenditure) provides virtually no information to the typical reader. Almost no one has any idea of how large or small this figure is in terms of the federal budget, or the implied tax burden from this level of spending. On the other hand, if the reporter had taken two seconds to use a calculator, she could have told readers that the expenditure is equal to approximately 1.7 percent of projected federal spending over this period. This information would immediately give readers a sense of the importance of this expenditure. (Arguably, the better measure would be as a share of discretionary federal spending – it’s approximately 4.6 percent of projected discretionary spending. This information can be quickly obtained through the CEPR Budget Calculator.)

As it is, we know that the public is hugely misinformed about the federal budget. Most people hugely overestimate the share of spending that goes to areas like TANF (the main cash welfare program) and foreign aid. Millions of people believe that the budget can be balanced by cutting these programs or eliminating some pork barrel projects that got special attention. The reality is that most of the obvious pork is pretty trivial in the context of the whole budget, and even taken together, a mass slaughter of pork barrel projects would not go very far towards eliminating the deficit. (I’m no fan of pork. I just don’t want people to be misled about it importance in the budget.)

We can deplore the general public’s ignorance about the budget, but is it really any surprise when all they ever see are numbers that would be meaningless to anyone who is not a budget wonk?

This is one that really should be mom and apple pie to reporters. After all, why present numbers that mean nothing to readers, when it is so easy to present numbers that actually provide information? I have never found a reporter who argued this point with me, and I have persuaded several to explicitly endorse it. For example, Dan Okrent, the New York Times first public editor, wrote a very nice piece (Numbed by Numbers, When They Just Don't Add Up, 1-23-05) which pointed out how meaningless it is to the typical reader to see a big number with lots of zeros. I printed a piece in the Columbia Journalism Review later in the year that made the same point (The Numbers Game, April 2005) and their copy editor volunteered to me that this seemed like a total no-brainer.

So, the question I will start this new blog with is, if everyone agrees that it makes much more sense to put numbers in context (especially budget numbers), and it is so easy to do, why don’t reporters do it?

I’ll throw in a few more points on this one later in the week, including an explanation of why it so important.

25 Comments:

  • At 12:40 PM, Anonymous Jason Z said…

    Because it's extra work and journalists are lazy?

    That's too glib. How about, because a number is just a number and you can write a number in an on-the-one-hand, on-the-other-hand story. But contextualizing -- which requires choosing the context to underscore (cons want that welfare number compared to "non-defense discretionary" instead of the total budget ... ) -- is an unavoidably editorial process exposing the writer to political crossfire. So it's extra work that's largely downside.

    An honor to be the first comment.

     
  • At 1:10 PM, Blogger Kevin Morford said…

    Dean, thanks for all your work on Economic Reporting Review for so many years. I for one am sorry to see it go, but I hope this blog will be an equal or greater source of good information about these issues.

     
  • At 3:11 PM, Blogger Buck said…

    I assume there will be a ton of these "thank you" comments but that won't stop me! Thank you very much for the ERR and this blog and especially your efforts regarding the attempt to dismantle social security.

     
  • At 3:31 PM, Anonymous David Gold said…

    Dean, glad to see you are keeping up this work! One issue with presenting numbers may be that it is not always clear what denominator to use. Is it GDP, federal spending, descretionary spending, non-military spending, past spending on similar projects, etc? Some of these will give very low numbers, which then makes it harder to justify that there is a real story. Those of us who work with numbers may feel comfortable making these choices but I can see where a journalist may feel confused and prefer to avoid such choices in favor of the typical two-handed set of quotes.

     
  • At 4:02 PM, Anonymous Martin said…

    Another thank you. As a longtime ERR reader I'll miss the weekly fix. Hope you will keep pounding away. It's off to a good start.

     
  • At 4:07 PM, Blogger __Fair Left__ said…

    Looking forward to this blog, as I did every week to the economic reporting review. Thank you for those years of hard work, the enlightenment is greatly appreciated.

     
  • At 4:09 PM, Anonymous Mario said…

    Great to know of an economist who goes public! Yes, your numbers are story telling, while the ideological economists gives us the number game.

     
  • At 4:14 PM, Blogger Jean said…

    "if everyone agrees that it makes much more sense to put numbers in context (especially budget numbers), and it is so easy to do, why don’t reporters do it?"

    That's easy. Because it requires higher-order thinking and extra work, and most reporters can't be bothered.

    Thanks for doing ERR all those years, Dean. I discovered you about five years ago when I was doing research on intellectual property/drug patents, and have been a fan ever since. I look forward to following your blog.

     
  • At 4:59 PM, Anonymous LarryInCinci said…

    Dr. Baker,

    Thanks so much for your tireless efforts to bring light to these dark places. Although I will miss the weekly ERR I will look forward to this blog

     
  • At 6:37 PM, Anonymous Mike Berla said…

    If editors wanted context reporters would supply it. They don't so they don't. Readers who care about this should let ombusdmen, public editors, etc., know of their concerns.

     
  • At 7:30 PM, Blogger PGL said…

    I'm hoping Papa Angrybear adds a link to your Beat the Press. This is something that needs to be in BlogLand. Brad DeLong has been trying but he needs all the help he can get. Thanks for starting this!

     
  • At 9:15 PM, Anonymous Michael Froomkin said…

    As I say in this post, I think the reason is that big billions sound like a big headline, and might make the front page. 1.7% doesn't sound so exciting. Page A17 if you are lucky.

     
  • At 9:15 PM, Blogger Bruce Webb said…

    Welcome Dr. Baker.

    It is not just mainstream media types that need to learn to examine the numbers and assumptions behind the numbers, even the Left econoblogs need an injection of some fundamental numeracy. This is nowhere more prevalent than on Social Security where people are perfectly willing to deploy second order dates and dollar figures derived from first order assumptions they would never think to accept in any other context. You taught me the most important word in the Social Security debate: "productivity" back in the late 90's. I look forward to some explication of current numbers in the context of Social Security: the Phoney Crisis

    And do you buy the current explanation for delaying the Annual Report? If the problem is that the renominations of the Public Trustees are stuck in the Senate, well Congress is not in session and a couple of recess appointments might be in order here. If that is actually the reason for the non-release.

    I want to see that Report (due last March 31)and then your take on the numbers as they are reported by the MSM. Should be interesting indeed.

    Beat the Press. Preferably with FDR's cousin Teddy's big stick.

     
  • At 10:44 PM, Blogger Tom Faranda said…

    Good luck with this blog. I enjoyed your book, Social Security, the Phoney Crisis, even though I disagreed with most of it.

     
  • At 11:29 PM, Blogger spiiderweb™ said…

    Thank you for your future posts. It is important to put the numbers in context.

    That said, I think its also important for people to understand what enormous amounts of money are being spent by government.

    I offer readers this little exercise to put that money in perspective.

     
  • At 5:14 AM, Blogger Dean Baker said…

    I have a couple quick points to toss in. First, I appreciate all the comments on ERR from folks. It was a lot of work, and it's good to know that it was appreciated.

    On the substance, I don't think the interest in getting a front page story explains the use of "$285 billion" instead of 1.7 percent of spending. Most of these articles did not get on the front page, and big newspapers and wire services will cover the transportation bill regardless of which measure is used.

    The second point, that it requires a judgement on the reporter's part as to which denominator to use, I think comes closer to the mark. It's not that this is in principle so difficult, and it is certainly possible to use more than one in the same article, but it does require breaking with the standard practice.

    While I'm not calling reporters lazy (many often can be, just like the rest of us), it is always easier to keep doing what everyone else is doing, rather than take the initiative to do something different, even when it is something as simple as expressing numbers as percentages. (Credit goes to Jonathan Weisman at the Post, he has begun using shares of spending in his budget articles.)

    Anyhow, I would say that inertia is the strongest force in this one.

     
  • At 5:44 AM, Anonymous Anonymous said…

    Thanks for all the work with ERR. There is an old Russian/East European joke about communist economic reporting: "Steel: 234,000 tons; coal: 346,000 tons..." Meaningless without context, of course, like much censored news.

     
  • At 8:56 PM, Blogger Steven said…

    Dean,
    Huge fan of all your work, and a huge fan of CEPR as well. I'm actually doing some research for one of my grad school classes on US citizens' public opinion regarding their government's foreign aid and development policy, compared with public opinion in Canada. You mentioned opinions on US foreign trade tend to overestimate it's size. Are there any good resources/articles/websites on the topic anyone can recommend?
    Thanks,
    Steven Josselson

     
  • At 5:19 PM, Anonymous batavicus said…

    Thank you from a short-time reader of ERR. Your writing has been invaluable in my high school gov't classes.

     
  • At 6:54 AM, Blogger Tim Worstall said…

    The correct way to do this would be what does each specific program cost per capita.

    The military: $500 per head.

    Farm Bill $400 per head.

    Medicare: $1,000 perhead.

    (Those numbers are complete inventions, I have no idea what they really are). Be interesting when they’re actually laid out properly like that, individuals would be ableto see what their tax money was being spent on. Strangely, I don’t think it will lead to pressure for higher spending.

     
  • At 10:15 AM, Anonymous Anonymous said…

    Dean,

    Thank you for your ERR, I hope this blog measures up to the high bar you have set. Could you comment or provide context on the effect a change in the velocity of money has on growth, inflation, etc (if you feel it has any?). And/or the effect of trading markets in specific commodities on the market price of those commodities.

     
  • At 4:16 PM, Anonymous New Economist said…

    Welcome to the small but growing pond of econobloggers, Dean. As a sometimes reader of the Economic Reporting Review and other CEPR reports, it's good to see your weblog.

    A small appreciation here.

    New Economist, London

     
  • At 5:05 PM, Anonymous Michael said…

    In a society where a certain kind of economics has become a kind of state religion of it, it is (somewhat) easy to understand why there is very little context supplied or analysis given to that state religion's monthly statistical pronouncements via its media. The best propaganda is that which is not suspected to be such. If the people of this society demanded of its media to supply the assumptions, the sources, and the calculations behind every economic statistic that it promulgates every time it did so for a year, I suspect congressional term limits would be totally unnecessary or there would be a significant drop in ratings and circulation for the media. Either, from my perspective, would result in a positive outcome.
    Thank you Dr. Baker for your efforts in this direction.

     
  • At 1:08 PM, Anonymous conchis said…

    It may not generalise to the US media, but in Britain I certainly have the impression that out-of-contextness is largely driven by sensationalism. They appear to consciously use the numbers that make the story sound more important, and do so particularly at the beginning of articles. (Sometimes the even providing the contextualised numbers towards the end of the piece once most people will have stopped reading - demonstrating that it's clearly not laziness.)

    Getting a front page story isn't the only motivation reporters have to be sensationalist, so I'm not sure the fact that not all out-of-contextness appears on the front pages is all that important.

     
  • At 2:13 PM, Anonymous keyur parmar said…

    Thank you very much for your great hard work it helped us at lot.

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