April 1, 2025

What Happens When The U.S. Government Reports 'Alternative Facts'?

National Memo -   What if the voters don't have a grasp on reality? What if the inflation rate rises to 9%, bird flu is ravaging farms across the Midwest, unemployment is rising, the economy is shrinking, measles is killing hundreds of children, crime is rising — but the government has suppressed or falsified the data that would reveal those conditions? We face the prospect that many government statistics will be manipulated by Trumpists.

The demolition work has already begun. The Labor Department has dismissed a committee of economists, academics and business leaders who advised the Bureau of Labor Statistics. The Commerce Department has disbanded the Federal Economic Statistics Advisory Committee — an arm of the Bureau of Economic Analysis — which seeks, or rather sought, to help the government provide accurate statistics on many aspects of the economy.

The move came on the heels of Commerce Secretary Howard Lutnick telling Fox News that he plans to alter the way GDP is calculated. "You know the Commerce Department runs the statistics of GDP. Governments historically have messed with GDP. They count government spending as part of GDP. So I'm going to separate those two and make it transparent."

Yes, some governments (think China) do sometimes misrepresent economic statistics. But our government has been pretty clean in this regard — until now. Keep in mind also that any first-year economics student could tell you how to break down GDP into government spending, consumption, investment and net exports — all statistics that are, for now, easily accessible thanks to the government.

This is yet another way the Trump administration is undermining America's global standing. As Tara Sinclair, a professor at George Washington University's Center for Economic Research, told NPR, "If the data were manipulated, even in a small way, that will affect the credibility of our entire statistical system. And that's going to have global financial implications, because people around the world rely on the quality of U.S. economic data to make decisions.

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