4 ms·
Not directly (but I agree). I'm saying that averages ignore distribution. If you combine one part of 100% growth and nine parts 0% growth then overall you have
by scrollbar 13y ago
Not directly (but I agree). I'm saying that averages ignore distribution. If you combine one part of 100% growth and nine parts 0% growth then overall you have 10% growth. Does that mean all the parts are growing, or even most of them are growing? Nope.
- mikeash 13y agoI think it's even more skewed than that. Growth that occurs among wealthier people has a disproportionate impact on the average, too. For example, if the top 10% of people have half the stuff, then just 20% growth among the top 10% and 0% growth among the rest will give you an average of 10%. On the other hand, if the bottom 90% experience 5% growth and the top 10% experience none, it looks like an average of merely 2.5%.