Kerry's Origami Economics - Home Ownership
Home ownership is expressed as a percentage and is "computed by dividing the number
of households that are [occupied by] owners by the total number of [occupied] households" (Census Bureau). The source data from 1965 to the present is here.
Kerry seeks to view this statistic as a rate of change from one period over another. This introduces the first problem. Quite by definition, as a percentage approaches 1.00, the rate of increase decreases even though absolute increases continue to be seen. You see, by analogy, if everyone is poor and makes $1.00 a year and they thereafter earn $3.00 a year, then Kerry would think that is good - a 200% increase. But if everyone is rich and makes $100,000 a year, and thereafter makes $110,000 a year, Kerry would think that is bad because they only made 10% more, as opposed to the 300% increase of the other group. Personally, I would rather be in the 10% increase group.
Viewing the source data, home ownership for Q4/2003 is at 68.6% - the highest rate in history. Higher, ergo, than at any time in the Clinton years. In fact, every quarter under W has been higher than any quarter in history. And since we are on the topic, Clinton's time saw rates as low as was seen in 1967.
I don't need to invert the standard deviation as Kerry wants me to in order to understand that more people own homes than ever.
Who does this guy's figuring?
Monday, April 12, 2004
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