Donald Trump’s cuts to US government raise worries over economic data quality

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Deep reductions in the Trump administration are threatening to erase the quality and reliability of the “Golden Standard” US statistics. Economists have warned.

US data from jobs to inflationary indicators can include $ 105TN stock market with milletal and bonds, and the policies below the world’s largest economy.

But economists are more and more bothering Elon Musk’s so-called Department of Government Efficiency (DOGE) A radically thin down government will promote the statistics of collecting, analyzing and researching the US economy.

“All of the federal funding cuts and some of what you have seen go out of the dog.

He added: “The things that go behind [the consumer price index, GDP] And others, all those inquiries I think about possible. ”

The US Sprawling Statistics is decentralized, more than dozens of agencies and scores collect data in several departments, including trade, labor and agriculture. These agencies produce flags reports, such as consumer price index and non-farm salaries, which are closely studied in Wall Street, which help us to inform policy discussions and scientific research.

“Having absolute highest standards of data that the United States government Statistical agencies are absolutely determined. It must be in everyone’s interests to make the numbers as accurately as they can be. “

Trade Secretary Howard Lutnik’s proposal that its department is a measure of GDP, which shines the government’s expenses, unlike international norms, whether political officials will try to influence the economic report.

“The United States has always been on the standard gold data, especially on items like GDP, labor, prices,” said Steve Kepchet, the economist of the university of international settlements and the economic and monetary department of international settlements. “It was the gold standard, because the society and the government supported and believed it to measure things as accurately as possible.”

Lutnik’s move to closing the Federal Council of Economic Statistics, a body that advised statistics agencies raised concerns about Chicago University of Chicago.

David Wilkox, who was in February before closing in February, said that the step was “shame, as the work of the Council will not lead to a lower quality of statistics at almost no cost at almost no price.”

More than 90 percent of respondents’ survey report that they are either “a little” or “very much” worried about the fall of the US economic data, particularly due to the closure of FESAC.

Economists are also concerned that in order to reserve expenses, Dogge’s attempts will lead to statisticians who have a high degree of specialized knowledge, which they will spare longer.

Mutrin Shapiro, Michigan University of Economist, who is the former chair of FESAC, said: “The [push for federal staff to take] Early pensions can lead to very high expert human capital that goes out the door. “

Shapiro also believes that President Donald Trump will eliminate the “Information Silos”, which would make the agencies participate with the presidents appointed by the President, as well as for the study of the work forces.

Research networks that play a critical role in developing and maintaining standards, such as the National Bureau of Economic Research, are also under pressure from billions of dollars to finance research.

N.Bn receives about half of its funding from National Health Institutions, National Scientific Foundation and the US Social Security Administration, which are now subject to Trump’s attempts to restore research costs.

NEW PRESIDENT Jim said that the current and offered reductions in funding will accompany his organization to post-recording activities and lower costs. Although some measures can be recycled from private sector funding sources, it was difficult to suffice enough to comply with government funding.

“The research pipeline is going to become small,” said Poterba, adding that political political decisions will be possible.