Cooking the books? Fears Trump could target statisticians if data disappoints

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"Concerns Rise Over Potential Political Interference in U.S. Economic Data"

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TruthLens AI Summary

The phrase attributed to Mark Twain, regarding the manipulation of statistics, resonates deeply in the current political climate as fears arise that the Trump administration may target statisticians for producing data that contradicts the president's narrative. With the economy facing pressure from various sectors, including global markets and public skepticism about trade policies, the administration's proposed rule change to facilitate the dismissal of civil servants deemed to be undermining presidential directives has raised alarms among economists and data experts. This change could threaten the integrity of crucial economic statistics provided by agencies such as the Bureau of Labor Statistics (BLS) and the Bureau of Economic Analysis (BEA), which play a vital role in shaping economic policy and guiding business decisions. Experts like Erica Groshen warn that these modifications may lead to a culture of fear among statisticians, where the release of unfavorable data could result in job loss, thus compromising the objectivity and reliability of economic information in the United States.

This potential shift in data governance echoes troubling historical precedents in countries like Argentina and Greece, where manipulation of economic figures led to severe financial crises and political instability. Observers fear that if the Trump administration prioritizes political loyalty over statistical integrity, the U.S. could find itself in a similar predicament, where the credibility of its economic data is called into question. The implications of such actions could extend beyond mere statistics; they could undermine public trust in government and the democratic process itself. As experts emphasize the importance of accurate data for sound policymaking, the ongoing debate surrounding the proposed civil service changes highlights the fundamental role that unbiased statistics play in a functioning democracy. The urgency for stakeholders to voice their concerns regarding these changes is critical, as the future of economic reporting and the health of democratic institutions may depend on maintaining the integrity of government data collection.

TruthLens AI Analysis

The article raises concerns regarding the potential manipulation of statistical data by the Trump administration, particularly if economic indicators do not align with the president's narrative. By suggesting that the administration may target civil servants who provide objective data, the piece highlights the tension between political pressures and the integrity of economic statistics.

Concerns about Data Integrity

The fear articulated by economists and statisticians is that the administration could undermine the credibility of crucial economic data. The proposed rule change allowing for easier dismissal of civil servants deemed to be "intentionally subverting presidential directives" could lead to a chilling effect on those responsible for generating key economic statistics. This could result in a distortion of data that businesses, investors, and policymakers rely on, ultimately threatening the U.S.'s reputation as a stable economic power.

Political Context

The article hints at a broader political strategy as the Trump administration faces criticism over economic performance, especially regarding GDP figures and potential recession risks due to trade policies. By targeting statisticians, the administration could attempt to reshape narratives around economic data, thus diverting public attention from unfavorable statistics.

Public Perception and Trust

This narrative is likely to resonate particularly with communities that are skeptical of the current administration and concerned about transparency in government data. It could amplify fears regarding the politicization of statistics and erode public trust in economic indicators, which are essential for informed decision-making.

Impact on Markets

The implications of manipulating economic statistics extend to financial markets. If investors perceive that data is being skewed or manipulated, it could lead to increased volatility and mistrust in the markets. This uncertainty could have significant repercussions for stocks, particularly those in sectors sensitive to economic performance.

Global Implications

On a global scale, the U.S.'s standing as a reliable economic partner could be jeopardized if data credibility is compromised. This could affect international relations and trade agreements, especially as other nations might question the reliability of U.S. economic reports.

Artificial Intelligence Considerations

Regarding the potential use of AI in crafting this narrative, it is plausible that AI-driven tools may have been employed to analyze data trends and public sentiment. However, the article does not explicitly indicate AI involvement in its creation. If AI were utilized, it could have influenced the framing of statistics and the emphasis on certain political narratives.

The article ultimately seeks to alert the public to potential overreach by a political administration in manipulating data, reflecting broader concerns about accountability and integrity in government. The concerns raised are grounded in historical context and current political dynamics, making the article relevant to ongoing discussions about governance and transparency in data reporting.

Unanalyzed Article Content

Summarizing his befuddlement with numbers, Mark Twain observed that there were “lies, damned lies and statistics”.

The acerbic phrase later become so deeply embedded in popular consciousness that it once formed the title to an episode of The West Wing, NBC’s portrayal of a fictitious US president played by Martin Sheen.

Now professional economists and number-crunchers fear the aphorism could become a White House theme in real life. Buffeted by global markets and public opinion – both of which show a wary skepticism of Donald Trump’s affinity for trade wars – the president may be about to turn his renowned hostility to truths at odds with what he believes towards public servants charged with producing accurate information.

A proposed rule change making it easier to fire civil servants deemed to be “intentionally subverting presidential directives” could pave the way for the White House to fire statisticians employed to produce objective data on the economy but whose figures prove politically inconvenient, experts warn.

Statistics released by agencies such as the Bureau of Labor Statistics (BLS) and the Bureau of Economic Analysis (BEA) are used by the Federal Reserve Bank to set inflation policy and interest rates. They also form the basis on which businesses and investors take decisions.

The US’s global reputation as a stable economic power and a reliable partner goes hand-in-hand with its long history of producing accurate data, dating back to the establishment of the BLS in 1884. Interfere with the latter and you risk sacrificing the former, experts warn.

But with Trump under pressure to explain shrinking gross domestic product (GDP) figures amid economists’ warnings that tariffs could trigger a recession, the administration could use new employment rules to pressure workers into “cooking the books”.

“There are a number of changes to the civil service that make it much easier for the administration to try to interfere with the activities of the statistical agencies and that worries me,” said Erica Groshen, a specialist in government statistics at Cornell University.

While acknowledging that there is as yet “no evidence” theTrump administrationhas done so, Groshen, a former commissioner at the Bureau of Labor Statistics (BLS), fears a new rule proposed last month by the White House’s office of personnel management threatens the future integrity of federal agencies’ figures.

Thechange, based on anexecutive ordersigned by Trump on 20 January immediately after his inauguration, would reclassify about 50,000 as-yet-unspecified permanent civil servant positions to “policy/career” category, thus enabling their removal for “poor performance or misconduct”.

The precise roles to be so redefined have yet to be revealed but Groshen fears statistic specialists will be in the administration’s crosshairs.

“Bureau of Labor Statistics’ leaders could be fired for releasing or planning to release jobs or inflation statistics unfavorable to the president’s policy agenda,” shewrote in a briefing paperthat urges organizations dependent on BLS figures to submit comments criticizing the proposal.

“By making it easier to remove employees if a president determines that they are interfering with his or her policies, it increases the potential for passivity or political loyalty to be prioritized over expertise and experience.”

Trump regularly cast doubt on the accuracy of economic datawhen in opposition – calling positive BLS jobs figures during the Obama and Biden administrations “fake” but hailing them as accurate when they painted a rosy picture of the economy during his first presidency.

Last month, when GDP figures showed an economic contraction during the first 100 days – partly fueled by tariffs –Trump put the blame on Biden.

“We had numbers that, despite what we were handed, we turned them around and we were getting them really turned around,” he told reporters.

The commerce secretary, Howard Lutnick – who has direct responsibility over many of the statistical agencies – has suggested changing the way GDP is calculated in a way that might provide more upbeat figures but which would mark a departure from established practice and international standards.

Diluting data agencies’ impartiality risks adding the US to the category of countries which have had the veracity of their economic statistics openly doubted, critics say. Groshen citedArgentina, whose official inflation figures were rejected as falseby the International Monetary Fund (IMF), and Greece, wheregovernment statisticians were saidto have miraculously made inflation and disqualifyingly high budget deficits “disappear” to enable it to join the European Union’s single currency, the euro, in the late 1990s.

The sleight of hand had dire consequences. The 2008 global financial crash propelled the country’s economy into a tail-spin, forcing it to seek huge loans from the IMF and the EU, which were only given on condition of harsh austerity measures and cuts to public services.

Popular anger over the conditions in Greece destabilised establishment political parties and led to a rise in support for radical and populist alternatives, including the leftwing Syriza, which won power in 2015. Frequent elections and changes of government since have raised concerns about the health of the country’s democracy.

The IMF also censured Argentina and threatened it with expulsion in 2013 after officials were found to have been grossly understating the inflation rate for the previous six years.

Argentina – historically one of the IMF’s biggest borrowers – did not receive another loan from the organisation until 2018. That loan, followed by another in 2022, failed to stabilise the country’s economy and in 2023, Javier Milei, a far-right candidate and professed admirer of Trump, was elected president pledging drastic spending cuts to address its chronic economic problems.

Last month saw the fund agree to another $20bn bailout for Milei’s government.

Despite these baleful precedents, the Trump administration’s sensitivity to economic figures indicating a tariff-driven slowdown creates a potential spur to follow a similar path, argued Erasmus Kersting, an economics professor at Villanova University.

“I would say that there’s definitely an incentive to cook the books, but I don’t think that it is going to be very easy or feasible to do,” he said, citing the US’s long tradition of producing accurate economic figures.

“The Bureau of Economic Analysis would essentially need to be silenced or defunded and replaced with some other statistical agency, which would then result in different figures. The same would be true of the Bureau of Labor statistics.”

Accurate and unbiased figures are crucial in helping the Federal Reserve form sound policy, Kersting said. In their absence, Trump might have more scope to attack the Fed’s chair, Jerome Powell, who he has already accused of “playing politics” by not bowing to his demand to cut interest rates.

Kitty Richards, a former treasury and White House official under the Biden and Obama administrations, said data collection had been impaired by Elon Musk’s attacks on federal agencies under the auspices of the unofficial “department of government efficiency,” or Doge.

“We should view attacks on government data collection as hand in glove with attacks on journalism,” said Richards, now a senior fellow at Groundwork Collaborative, a thinktank. “Undermining data collection and casting doubt on data that is released is part of a program of undermining the public’s ability to learn the truth.”

Even a temporary interruption of the US’s established data-collecting capacity would be a “real tragedy” and lead to a permanent loss of knowledge, she said. “You can’t go back and fix it. If you have a data series stretching back 50 years, then it gets cut for two or three years, you no longer have that 50-year data series. You’ve lost knowledge forever.”

Greshen, who is calling on users of government statistics to object to the proposed civil service changes before a 30-day window expires on 23 May, said the fate of US democracy could hinge on the continued production of accurate figures.

“In a democracy, you want to be feeding people the right information so they will make the right choices. But if the goal is to destroy democracy, you’d want to control the statistics to fit your story … you want to be promoting your own version of reality.”

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Source: The Guardian