Page 60 - Ekonomija i Biznis_septemvri 2016.indd

РECУБOРNИOКMАY

Pavle Gacov

The author is President
of the Assembly of

Accountants’ Association of
the Republic of Macedonia

Mathematics + economy + politics

Mathematics is an exact science,
however the political reading of the
numbers is an “amazemathics (amazing
mathematics)”

Short general review of numbers as a tool for analyses

of events and trends in the economy

Some current conditions in the Mace- to be equal to 100, especially if we are comparing
donian economy and politics seem so the value of different national currencies. 100 Eu-
trivial that they do not deserve serious ros is not equal to 100 American dollars, even less
attention. Do they? to 100 Macedonian denars. Same numbers with a
The non-addressing of the seemingly different value.
trivial occurrences can turn us, God forbid, into
their supporters, that is, accomplices. For this From the previous we shall conclude that the
reason we focus our attention of the general and absolute numbers are not the real universal lan-
especially the professional public towards such guage which has the same meaning for everyone,
occurrences. Let us cut the introduction – it is a that is, they are not understood in the same way,
matter of “numbers”. we would say that relative numbers i.e. percent
are such a world language. Are they?
Numbers are mathematical tools – universal
world language which cannot have two different The increase of the value of 10 units by 20% is 2
meanings. Namely, four is always more than two, units. On the other hand, the increase of the value
even when it is a matter of a loss. That’s how it is 100,000 for another 20,000 is also 20%. Both oc-
in mathematics as a science, everywhere in the currences with the universal language of relative
world, even in Macedonia. numbers increased by 20%. Do percent capture
the essence of the comparison? Of course not.
For a serious analyst, numbers are a tool for Absolute numbers in such a case differ for 10,000
analysis, and once it is transformed into a report, times. Namely, 20,000 units are 10,000 times
it would be a foundation for adoption of a deci- more than the two units. Such a large difference
sion (business, investment, macroeconomic de- of the absolute values for the same percentage of
cision…). The decisions which are not supported growth!? Is such a comparison of percent useful?
by various forms and variants of cross numbers Of course it has no use value.
(indicators) are not rational by default. We place
them in the category of emotional, that is, intui- We gave the previous two examples with the
tive decisions which offer palliative solutions. On intent to demonstrate the uselessness of num-
the other hand, “bare numbers” are used as an bers if they are unilaterally used, only as absolute
attachment for the adoption of politically desired values or only as relative values (percent). The
decisions, that is, policies. Such “numbers” are comparisons made with the use of only one or the
manipulative “numbers that lie”. Do numbers lie? other numbers are almost useless. Here it is not
Let us continue and reveal the lie. a matter of comparisons through time and com-
parisons with the others.
There must be descriptions for some numbers.
Let us explain. In the economy 100 does not have The comparison with the numbers through
time should show us the values in regard to the

60 September 2016