Leading Indicators: A Short History of the Numbers That Rule Our World

Zachary Karabell tells the fascinating history of these indicators, which were invented in the mid-twentieth century to address the urgent challenges of the Great Depression, World War II, and the Cold War. They were rough measures--designed to give clarity in a data-parched world that was made up of centralized, industrial nations--yet we still rely on them today.

Today's world is shaped by information technology and the borderless flow of capital and goods. If we follow a 1950s road map for a twenty-first-century world, we will get lost.

What is urgently needed is not to invent a new set of numbers but to tap into the data revolution that offers unparalleled access to the information we need. Companies should not base their business plans on GDP projections; individuals should not decide whether to buy a home or get a degree based on the national unemployment rate. If you want to buy a home, look for a job, start a company or run a business, you can readily find your own indicators. National housing figures don't matter; local ones do. You can find those at the click of button. Personal, made-to-order indicators will meet our needs today, and the revolution is well underway. We need only to join it.