Jan 13

This was my last column for 2022 (appeared on December 23, I took December
30 off from writing). It cobbles together my explorations into three uses
of figures and prhases that bother me. (Two of them have always bothered
me.) Partly because they are wrong. Partly because they cover more than
they reveal, and that possibly by design.

Take a look:

Figures that say things about us,
https://www.livemint.com/opinion/columns/figures-that-say-things-about-us-11671725174409.html

(It's not just the figures that say things, it's the way they are used that
do as well.)

cheers,
dilip

---


Figures that say things about us


Some finagling with figures, for this week. Is there a theme to it all?
I'll leave that for you to decide.

To start, consider a list that's making the rounds titled "Top 10 countries
with the most billionaires." First and second on the list are, as you might
expect, China and the USA, respectively with 1058 and 696 billionaires.
Germany, the UK, Russia and Thailand are some of the other countries that
figure. But the reason the list is getting some attention in this country
is that India, with 177 billionaires, is ranked third.

We can presume that these billionaires' financial assets are measured in
dollars, and in each case, they amount to more than a billion dollars. That
India has as many as 177 such people says something about this country's
economy and its capacity to generate wealth.

Though there's the inevitable comparison with China. Our populations are
nearly identical, but that country has six times as many billionaires as we
do. So what does that say about both countries' economies and their
capacities to generate wealth? Or take the comparison with the USA: with
less than a third of our population, they have nearly four times as many
billionaires. What does that say?

But leave such musing aside. Whenever I see a list like this, I wonder idly
if anyone has ever tried to compile another list. The complement of this
one, if you like; a ranking at the other end of the wealth spectrum. That
is, if the people on the list own assets worth more than a billion dollars,
there must be those who own assets worth less than, let's say, a thousand
dollars.

Let's say we compile a list of "Top 10 countries with the most people who
own less than 1000 dollars." Which countries would figure on that list?
What would be the counts of such people for each of those Top 10 countries?
Would India figure? If so, where? Would this list make the rounds too?

This may have a connection to something else in this column. Wait for it.

***

Some days ago, an item in my morning newspaper caught my eye. This was the
headline: "Western Railway says punctuality of trains increased by 97 per
cent in 2022-23". This is a reference to Bombay's "local" trains, the
suburban services that are the lifeline of the city.

Two things piqued my interest. First, we are still several days away from
2023, so what is the meaning of "2022-23"? Second, an increase of 97 per
cent is huge. How was it achieved?

Then I read the report. The first sentence informed me that punctuality had
"increased to 97 per cent." "To", not "by": there's a big difference.
Besides, this punctuality level is "better than pre-Covid times, when it
was around 95 per cent." So we're talking about an increase from 95% to
97%. Yes, definitely not an increase by 97%.

Now I would like to know what this punctuality actually means and how it is
measured, besides what made it rise from 95% to 97%? But again, leave such
musing aside. The report ends with this: "Currently, the WR operates 1383
trains daily ... It carries 25.68 crore passengers on average every day."

Think about those numbers for a moment, and let's do some basic arithmetic
with them.

First, 25.68 crore is about ten times the population of Bombay. Is it even
conceivable that the city's trains are moving ten times the city's
population every day? No. So by itself, that number should have raised the
eyebrows of whoever wrote this item and/or edited it.

But the report offers a second way to understand just how absurd this
number is. Divide it by the 1383 trains WR runs daily. Each of those
trains, then, carries nearly 186,000 commuters. The "normal" capacity of a
typical 12-car train is about 1200, all seated. Of course these trains
usually carry many more than that number. At the height of rush-hour, each
carries close to 6,000 commuters.

Anyone who has travelled during rush-hour knows the meaning of that number
6,000: you're packed in like sardines, sometimes unable to even lift an arm
to scratch an itchy nose. So get this: this news report tells us the trains
are carrying, on average, 30 times that number.

Absurd is the word.

---

Finally, earlier this month another news report informed us that Prime
Minister Modi had said this, or words to this effect: "Air travel was a
luxury before 2014 but now even middle-class families look at it as an
affordable option."

To parse this claim, we need to know two things: what does "middle-class"
really mean? What are typical air fares these days?

For that second question, I picked Jaipur at random. Over a long weekend in
the middle of February, I will need to pay over Rs 5000 to fly there and
over Rs 5000 to return home to Bombay. Call it Rs 10,000 all in.

To answer the first question, we need to know something about the
distribution of wealth in India. Start with per capita income: for 2022,
India's is estimated at about Rs 150,000. That is, Indians earn, on
average, that much money in a year. Does this average (really, "mean")
income level define our middle class?

Before you answer that, ask if we should consider India's "median" income
instead. That is, the income point that divides Indians neatly in two: 50%
earn more, 50% earn less. The reason is that the mean can be distorted by
"outlier" values - 177 extremely rich Indians, for example. When you have
data like that, the median is a sounder, more accurate "average" to
consider. Only, data that would nail down India's median income is hard to
come by, for various reasons. Still, some estimates have it at about Rs
105,000.

Two questions to end this. First, do you, reading this, think of yourself
as "middle-class"? If so, how does your annual income compare to either Rs
105,000 or Rs 150,000?

Second, what would an Indian earning either Rs 105,000 or Rs 150,000 a year
think of travelling to Jaipur and back for Rs 10,000? Is that "an
affordable option"?

-- 
My book with Joy Ma: "The Deoliwallahs"
Twitter: @DeathEndsFun
Death Ends Fun: http://dcubed.blogspot.

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