Numerical Thinking: How to Find the Truth When Numbers Lie
Killer Innovations with Phil McKinney
Release Date: 12/02/2025
Killer Innovations with Phil McKinney
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Michael Dell and his investors spent twenty-five billion dollars to buy back Dell Technologies. But they weren't really buying a company. They were buying freedom from quarterly earnings pressure. I'm Phil McKinney, former CTO of Hewlett-Packard, and I witnessed how this pressure shaped decisions for years. Today, we are exploring why the misses what actually happens inside corporate boardrooms. The Reality of Quarterly Pressure I want to show you what quarterly reporting actually looks like from the inside. Let me paint you a picture. It's week seven of the quarter, and you're in a...
info_outlineQuick—which is more dangerous: the thing that kills 50,000 Americans every year, or the thing that kills 50?
Your brain says the first one, obviously. The data says you're dead wrong.
Heart disease kills 700,000 people annually, but you're not terrified of cheeseburgers. Shark attacks kill about 10 people worldwide per year, but millions of people are genuinely afraid of the ocean. Your brain can't do the math, so you worry about the wrong things and ignore the actual threats.
And here's the kicker: The people selling you fear, products, and policies? They know your brain works this way. They're counting on it.
You're not bad at math. You're operating with Stone Age hardware in an Information Age world. And that gap between your intuition and reality? It's being weaponized every single day.
Let me show you how to fight back.
What They're Exploiting
Here's what's happening: You can instantly tell the difference between 3 apples and 30 apples. But a million and a billion? They both just feel like "really big."
Research from the OECD found that numeracy skills are collapsing across developed countries. Over half of American adults can't work with numbers beyond a sixth-grade level. We've become a society that can calculate tips but can't spot when we're being lied to with statistics.
And I'm going to be blunt: if you can't think proportionally in 2025, you're flying blind. Let's fix that right now.
Translation: Make the Invisible Visible
Okay, stop everything. I'm going to change how you see numbers forever.
One million seconds is 11 days. Take a second, feel that. Eleven days ago—that's a million seconds.
One billion seconds is 31 years. A billion seconds ago, it was 1994. Bill Clinton was president. The internet was just getting started. That's how far back you have to go.
Now here's where it gets wild: One trillion seconds is 31,000 years. Thirty-one THOUSAND years. A trillion seconds ago, humans hadn't invented farming yet. We were hunter-gatherers painting on cave walls.
So when you hear someone say "What's the difference between a billion and a trillion?"—the difference is the entire span of human civilization.
This isn't trivia. This is the key to seeing through manipulation. Because when a politician throws around billions and trillions in the same sentence like they're comparable? Now you know—they're lying to your face, banking on you not understanding scale.
The "Per What?" Weapon
Here's the trick they use on you constantly, and once you see it, you can't unsee it.
A supplement company advertises: "Our product reduces your risk by 50%!" Sounds incredible, right? Must buy immediately.
But here's what they're not telling you: If your risk of something was 2 in 10,000, and now it's 1 in 10,000—that's technically a 50% reduction. But your actual risk only dropped by 0.01%. They just made almost nothing sound like everything.
Or flip it around: "This causes a 200% increase in risk!" Terrifying! Except if your risk went from 1 in a million to 3 in a million, you're still almost certainly fine.
This is how they play you. They show you percentages when absolute numbers would expose them. They show you raw numbers when rates would destroy their argument.
Your defense? Three words: "Per what, exactly?"
50% of what baseline? 200% increase from what starting point? That denominator is where the truth hides.
Once you start asking this, you'll see the manipulation everywhere.
Let's Catch a Lie in Real Time
Okay, let's do this together right now. I'm going to show you a real manipulation pattern I see constantly.
Headline: "4 out of 5 dentists recommend our toothpaste!" Sounds pretty convincing, right?
Let's apply what we just learned. First—per what? Four out of five of how many dentists? If they surveyed 10 dentists and 8 said yes, that's technically 80%, but it's meaningless.
Second—what was the actual question? Turns out, they asked dentists to name ALL brands they'd recommend, not which ONE was best. So 80% mentioned this brand... along with seven other brands.
Third—scale: There are 200,000 dentists in the US. They surveyed 150. That's 80% of 0.075% of all dentists.
See how fast that falls apart? That's the power of asking "per what?
The Exponential Trap
This is where your intuition doesn't just fail—it catastrophically fails. And it's costing people everything.
Grab a piece of paper. Fold it in half. Twice as thick, no big deal. Fold it again. Four times. Okay. Keep going. Most people think if you could fold it 42 times, maybe it'd be as tall as a building?
No. It would reach the moon. From Earth. To the moon. That's exponential growth, and your brain cannot comprehend it.
Here's why this matters in your actual life: You've got a credit card with $5,000 on it at 18% interest. You think "I'll just pay the minimum, I'll catch up eventually." Your brain treats this like a linear problem. It's not. It's exponential. That $5,000 becomes $10,000 faster than you can possibly imagine, and then $20,000, and suddenly you're drowning.
Or retirement: Starting to save at 25 versus 35 doesn't feel like a huge difference. Ten years, whatever. But exponential growth means that ten-year head start could be worth 2-3 times more money when you're 65.
When you hear "doubles every," "grows by X percent," or "compounds"—stop. Your intuition just became your enemy.
Rapid Reality Checking
You don't need a calculator to spot lies. You need a sanity check that takes ten seconds.
I'm going to give you the fastest BS detector I know:
Round brutally. 47 million becomes 50 million. 8.7% becomes 10%. Precision is the enemy of speed.
Find the zeros. Is this thousands, millions, billions? Get the ballpark right first.
Do the rough math. What's 7% of 50 million? Well, 10% is 5 million, so 7% is about 3.5 million. Done. Close enough to catch the lie.
Smell test it. Someone claims a new app has a billion users after launching last month? That's one in eight humans on Earth. Really?
I use this every single day now. News article, social media post, advertisement—ten seconds and I know if someone's lying to me. You're not trying to be exact. You're trying to be un-foolable.
Don't Make These Mistakes
Before we go further, let me save you from three traps I see people fall into.
First: Don't become the conspiracy theorist who distrusts ALL numbers. Sometimes 50% really is 50%. The goal is healthy skepticism, not paranoid cynicism.
Second: Don't weaponize this to win petty arguments. "Actually, you didn't do 50% of the dishes"—nobody likes that person.
Third: Don't assume you're now immune to manipulation. These are tools, not shields. Stay humble. Smart people get fooled all the time—they just recover faster.
Putting It All Together
Let me show you how these four techniques work as a system.
A tech company announces: "We've tripled our user base to 3 million, growing 200% annually, and reduced complaints by 90%!"
Watch this:
Scale check: 3 million users. In social media? That's tiny. Instagram has 2 billion. Context matters.
Per what? Tripled from what starting point? If they went from 50,000 to 3 million, that's actually 60x growth—why understate it? And 90% reduction from how many complaints? Ten to one? Who cares.
Exponential check: 200% annual growth is explosive... and unsustainable. What happens when they hit market saturation next quarter?
Quick estimate: If they have 3 million users and the market is 300 million potential users, they've captured 1%. Still lots of room to grow—or lots of room for competitors.
See how these stack?
Your Turn—Right Now
Okay, pause this video. Seriously, pause it.
Open your news app or social media feed. Look at the first three posts with numbers in them. Now run them through the test: What's the scale? Per what? Is it exponential? Does it pass the smell test?
I'll give you 60 seconds. Go.
Done? Did you find manipulation? I bet you found at least one. Comment below what you discovered—I genuinely want to know what you're seeing out there.
The Real Stakes
Let me tell you what just happened.
You learned five techniques. But you actually learned something bigger: You learned that your intuition about numbers is systematically broken, and people in power know it and exploit it.
Remember the opening? The reason you're more afraid of sharks than heart disease isn't random. Media companies know fear drives clicks, and rare dramatic events trigger your brain differently than common statistical threats. So they show you the sharks, not the cheeseburgers.
They're not smarter than you. They're just counting on you not checking the math.
We're entering an era of AI-generated stats, algorithmic manipulation, and deepfake data. Your ability to think proportionally isn't just about making better decisions anymore.
It's about knowing what's real.
The people who can't tell a million from a billion will be led by people who can. And those people? They're fine with you staying confused.
So what are you going to be—the one doing the math, or the one getting played?
If you want to keep sharpening these skills, this is episode 7 in the Thinking 101 series. Each episode gives you another tool for thinking clearly in a world designed to confuse you. Hit subscribe so you don't miss the next one. And if this changed how you see numbers? Share it. Someone in your life needs this.
Choose today.