PLEASE NOTE:

MyNews24 is a user-generated section of News24.com. The stories here come from users.

 
Reality
 
Comments: 9
Article views: 638
 
 
Latest Badges:


 
View all Reality's badges.
 

Lies, more lies, statistics

15 October 2012, 12:50
Every now and again the Government, or some other organisation, goes off about the Gini Coefficient that is so high in South Africa.

If you do not know by now what the Gini Coefficient is, let me give you a quote from wikipedia

"The Gini coefficient measures the inequality among values of a frequency distribution (for example levels of income). A Gini coefficient of zero expresses perfect equality where all values are the same (for example, where everyone has an exactly equal income). A Gini coefficient of one (100 on the percentile scale) expresses maximal inequality among values (for example where only one person has all the income)"

According to the Gini coefficient, South Africa has the highest score in the world, 63.1 as measured by the World Bank and 65.0 as measured by the CIA. (Wikipedia)

Wait a minute!!!! Why are there 2 values? 63.1 and 65.0? And this, boys and girls, is where the sh*t hits the fan.

To answer that I am going to show you what is the cause of the high Gini Coefficient in South Africa.

'Hau', you say 'Everybody knows that it is the huge difference in salaries between ordinary black and white people'.

'Uh?', I say....'Well, in that case, everybody is wrong because that it not what is causing it'

'Hau', you say, 'Everybody tells us that...everybody cannot be wrong at the same time?'

'Yes they can', I say. 'The High Gini coefficient in South Africa is caused by the +- 5 000 highest earners in South Africa. Take them out of the equation and South Africa's Gini Coefficient drops below 50 and South Africa becomes like any other ordinary country.'

To prove this I am going to give you a small lesson in how to calculate the Gini coefficient - actually I am going to cheat a bit because I am going to tell you how it works and then show you how to use an online Gini coefficient calculator. Furthermore, to make everybody understand it easier, I am going to assume that there are only 10 people in the country

Ok, let's start.

In this step you have group all the people according to their income per month or year.

Group
------------
Group1:   R0-R5000                7
Group2:   R5001-R10000        2
Group3:   R10001-R15000      0
Group4:   R15001-R20000      0
Group5:   R20001-R25000      0
Group6:   R25001-R30000      1

So, we have 7 people earning between R0-R5000, 2 people between R5001-R10000 and 1 rich guy earning R 30 000.

So, let's head over to http://www.peterrosenmai.com/lorenz-curve-graphing-tool-and-gini-coefficient-calculator
where we can calculate the gini coefficient. To do that , just type in the 7,2,0,0,0,1 on consecutive lines. When completed, click on Calculate.

Congratulations! You have just calculated your 1st Gini Coefficient. Look in the right of the graph next to the blue square and we see Gini = 70.00. How can it be so large? Surely there must be a mistake?

No mistake. Now do the following...Remove the 3 zeros and move the line with the 1 up so that you have only 7,2,1 on consecutive lines. Click on Calculate. Remarkably the Gini now comes down to Gini = 40.00

You can play around more if you like but what we see here is that the number of blocks with zero count an awful lot.

In South Africa, most people earn less than R 30 000 per month - blacks as well as whites. However, there are a few people earning R 100 000 and more per month. The more these rich people get, the more they increase the distance (number of 0 blocks)  between them and the rest of the population. Millionaires are bad for the Gini. Just think how billionaires mess it up!
Remove these guys from the calculation and South is just another ordinary Gini statistic.

The unusually large number of billionaires in South Africa compared to the number of ordinary citizens...the Ruperts, Openheimers, Motsepes..skew the Gini Coefficient considerably.

So, dear Government or other institutions, the next time you go off about white people being responsible for the high Gini.....know now that people know how to calculate it and can see through you.

Oh, and before I forget. The difference between the value for the World Bank and CIA is because they group it differently.

So, as they say...There are lies, more lies and then there is statistics.












Disclaimer: All articles and letters published on MyNews24 have been independently written by members of News24's community. The views of users published on News24 are therefore their own and do not necessarily represent the views of News24. News24 editors also reserve the right to edit or delete any and all comments received.

 

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
9 comments
Add your comment
Comment 0 characters remaining

Read more from our Users

Submitted by
Lucca Olivia Munnik
Why Race And Culture Shouldn't Be...

Throughout History, race has always been the issue. Certain racial groups have been dehumanised, degraded and discriminated, allowing them to believe they are inferior. Read more...

2 comments 66 views
Submitted by
Ace Socheeze
The 8th Annual Soweto Comedy Fest...

The popular annual Soweto Comedy Festival is back, this time bigger and better as it turns eight years. Read more...

0 comments 11 views
Submitted by
Adam Sibuyi
Julius Malema has sold the 1 mill...

We don't understand where this malema and his crew's behaviour are coming from. All this shows that there is no discipline in the EFF Central Command Team(CCT).  Read more...

20 comments 2205 views
Submitted by
Andrew Patterson
What happened to our Renaissance ...

I had the privilege of going to an all boy school steeped in culture and tradition; where respect was earned not just given. Read more...

3 comments 191 views
Submitted by
Niel Knoblauch
On SA: Unemployment & Our Hearts

After a year of not really thinking too much about it, the current state of South Africa has re-entered my thoughts this past weeks from a number of sources.  Read more...

1 comments 102 views
Submitted by
Jenelle Joanne Ramsami
'You all have the right to see it...

I suggest you need to put "SUBTITLES" for the deaf/hearingimpaired.  Read more...

19 comments 5199 views
 

services

E-mail Alerts The latest headlines in your inbox

RSS feeds News delivered really simply.

Mobile News24 on your mobile or PDA

E-mail Newsletters You choose what you want

News24 on Android Get the latest from News24 on your Android device.

SMS Alerts Get breaking news stories via SMS.

Blogs Your opinion on you, me and everyone.

TV Get us in your home, on your television.

 
Interactive Advertising Bureau
 
© 2015 24.com. All rights reserved.
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.