When the leaders of countries
get together - with a 25-mile security perimeter guarded by
machine gun toting thugs in police uniforms and the
announcement regarding what they were doing was discussing
jelly beans and chocolate, you know something is amiss.
While the above is amusing in
a very sad kind of way, the subject of definitions - or more
precisely, coding definitions for computer systems is
anything but amusing. It's critically important in the
way the computer systems accumulate statistics, report on
the statistics and most especially in the way you interpret
the reports on those statistics. By way of
example, consider the word, "manufacturing". Unless
you are a green-eye shade government economist trained
within the last decade or so, your perception of
manufacturing is a plant that assembles a product - a
tangible good for sale most often to a wholesaler.
However, in the 'New World Order' - a world managed by
the definition of manufacturing changed as are the
definitions of jelly beans and chocolate changing.
The importance of statistical
reports cannot be overstated. The modern world runs on
these statistical reports as evidenced by the statements of
government and business leaders regarding the
"Economic Census" reports:
The Economic Census
is indispensable to understanding America's
economy. It insures the accuracy of the statistics
we rely on for sound economic policy and for
successful business planning. Returning your
economic census form helps us all." --Alan
Greenspan, Chairman of the Federal Reserve Board
"Sound and timely
economic data are the fuel that powers economic
decision making. Data are used by Congress, the
Federal Reserve, regulatory agencies, and American
businesses to formulate and evaluate fiscal,
monetary, and regulatory policies and to develop
business plans and financing strategies.
sound economic data, policy makers in both the
public and private sector would be flying blind.
"The current economic
statistics that most people are familiar with,
like retail sales and the Gross Domestic Product,
all have their origins in the data that are
collected in the 5-year economic censuses. So when
we rely on, and others rely on, those current
economic statistics, for policy decisions, they
really are relying on the quality of the economic
American Industry Classification System (NAICS)
United States has a new industry classification system! On
April 9, 1997, the Office of Management and Budget (OMB)
announced its decision to adopt the North American Industry
Classification System (NAICS pronounced Nakes) as the
industry classification system used by the statistical
agencies of the United States. NAICS replaces the 1987
Standard Industrial Classification (SIC).
NAICS is a unique, all-new system for classifying business
establishments. It is the first economic classification
system to be constructed based on a single economic concept.
Economic units that use like processes to produce goods or
services are grouped together. This "production-oriented"
system means that statistical agencies in the United States
will produce data that can be used for measuring
productivity, unit labor costs, and the capital intensity of
production; constructing input-output relationships; and
estimating employment-output relationships and other such
statistics that require that inputs and outputs be used
NAICS is the first-ever North American industry
classification system. The system was developed by the
Economic Classification Policy Committee (ECPC), on behalf
of the OMB, in cooperation with Statistics Canada and
Mexico's Instituto Nacional de Estadística, Geografía e
Informática (INEGI) to provide comparable statistics across
the three countries. For the first time, government and
business analysts will be able to compare directly
industrial production statistics collected and published in
the three North American Free Trade Agreement countries.
NAICS also provides for increased comparability with the
International Standard Industrial Classification System (ISIC,
Revision 3), developed and maintained by the United
If the government redefines
jelly beans as "jellied sugar lumps", does that mean there
is a shortage of jelly beans when the report shows zero?
Crooks in White Shirts and Ties
Redefining the codes that produce the reports that the
Congress, the media and everybody else uses to gage the
health of the economy was a bamboozle of epic purportions.
This puts the ENRON, Worldcom, etc. accounting scandals to
shame. Changing codes produced 'shortages' in
some categories - and over abundances in others. An
example of how the statistics changed with the new coding
system was shown in a slide show produced by the
U.S. Census bureau on the 'Economic Census'.
Change the codes.... and Voila! Shortages of Qualified
American Workers... in all categories. And it enabled
"The Economy is Booming" message while in the real
world of the domestic economy there is a Depression.
"The SIC, however, treated the
production of goods for other
establishments of the same
enterprise differently. If a
produced goods for use within
the enterprise, the
was classified according to
its primary activity, not the
primary activity of the
establishment it served. This
different treatment of service
producing versus manufacturing
auxiliary establishments was
inconsistent and NAICS
recognized this inconsistency.
NAICS classifies auxiliary
establishments based on what
they do, not on whom they
serve. The production oriented
concept of NAICS mandated this
This change will result in
significant shifts in
employment data. In
1992, Census data showed over
1,000,000 auxiliary employees
assigned to manufacturing and
over 840,000 auxiliary
employees assigned to retail
trade. These employees are
most likely to move to either
the Management of Companies
and Enterprises sector; the
Warehousing and Storage sub
sector; the Computer Systems
Design and Related Services
sub sector; the Accounting,
Tax Preparation, Bookkeeping
and Payroll Services sub
sector; or some other
services-related sub sector.
For the 1997 Economic Census,
these auxiliary establishments
will be dual coded by primary
activity and by whom they
serve. The data will be shown
separately to provide data
users with the necessary links
to prior information."
[Note: the above implies that
after 1997, the links to prior
information were eliminated
and the conversion to the new
system was complete].
This is no doubt why
"economists surprised by latest unemployment increases"
has become boilerplate in economic news stories and yet....
the national unemployment statistics don't vary much from
around the 4½
percent figure. It explains why
at the time when there were record bankruptcies, record
foreclosures, lines at the food banks extending for a
quarter mile in Ohio, the newspapers were reporting a
And that's not the worst of
it. The same people who were inside players on the
SCAM of redefinition of the codes for U.S. economic reports
- are the same people who are pushing "reform" of our
education system to be a supply-chain management system for
business to fulfill the 'orders' caused by the 'Shortages'
of qualified American Workers.
National Association of Manufacturers
Chamber of Commerce
Regionalism and Education - Central Planning
and 'Regional Economic AUTHORITIES'
History of the 1997 Economic Census
"In June 1994, the
Census Bureau reorganized the Economic Directorate
to facilitate conducting both the 1997 Economic
Census and the agency’s current economic programs.
The Census Bureau established the Economic
Planning and Coordination Division (EPCD) to
provide centralized planning."
OMB Announcement 1994
Federal Register notice of July 26, 1994
(59 FR 38092-38096), OMB
announced that the ECPC had agreed to work in
concert with Mexico's Instituto Nacional de
Estadística, Geografía e Informática (INEGI) and
Statistics Canada to develop a new and common
industry classification system the North
American Industry Classification System (NAICS)
that would replace the existing system used in the
United States, the Standard Industrial
Classification System (SIC). Final agreement on
NAICS was announced in a Federal Register
notice of April 9, 1997 (62 FR
17287-17337). This agreement resulted in the
publication in 1998 of the new North
American Industry Classification
United States, 1997
Senator Judd Gregg, "We Do Have A Centrally Managed
A final note in this
commentary is a warning.... the people who are the
controllers of the government codes and computer systems (IT
computer consulting corporations in charge of government
facilities) can and will continue to "tweak" the codes to
manipulate the reports to serve THEIR economic interests...
not the interests of the American people and our country.
It's a classic example of the tail wagging the dog. To
be more precise.... the corporate takeover of government
computer systems by computer consulting firms was a
coup d'etat on the U.S. government - an
administrative coup d'etat.
August 24, 2007
Vicky L. Davis was a Computer Systems
Analyst/Programmer who spent 20 years designing and writing
computer systems for large corporations and state and local
governments. For 15 of those years, she worked as a
Contractor, which gave her exposure to a wide variety of
different businesses and their internal applications and
operations. She has traveled extensively and has lived in
nine states in the course of her life’s adventure.