Economic Report Distortions. What Distortions?

The Real Estate Espresso Podcast

Economic Report Distortions. What Distortions?

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Economic Report Distortions. What Distortions?

Welcome to the Real Data Special podcast – your morning shot on what’s new in the world of real estate investing. I’m your host, Victor Menasce. On today’s show, we’re examining the integrity of economic data. With recent headlines about the president dismissing the head of the Bureau of Labor and Statistics (BLS) and replacing him with a long-time critic of the bureau, questions and criticism have arisen about how the BLS collects its data.

With the world seemingly up in arms over perceived interference with how economic data is collected and reported, we’re going to take a historical look at how this economic and employment data is accumulated and released. We’ll uncover the various changes this process has undergone since the 1940s under the administrations of numerous presidents. However, both the Bureau of Labor and Statistics and the Bureau of Economic Analysis (BEA) declare they have no political affiliation and operate independently of any administration. But let’s delve into history and see if you agree with that sentiment.

The task of collating and disseminating these important statistics falls to two federal agencies: the Bureau of Labor and Statistics and the Bureau of Economic Analysis. The BLS, established in 1884, is charged with producing data related to employment, prices and productivity. The BEA’s role is to render a comprehensive overview of the U.S. economy through its national accounts and gross domestic product. These agencies are typically staffed by economists and statisticians whose integrity is crucial to their output’s credibility.

An example of a historical incident of note was under President John F. Kennedy’s administration in the early 1960s. After a public uproar over claims of political manipulation of unemployment figures, Kennedy created The President’s Commission to Appraise Employment and Unemployment Statistics. This committee, also known as the Gordon Committee after its chair, Professor Robert Gordon, played a pivotal role in igniting substantial, non-partisan improvements to the statistical system.

The metrics used to produce better numbers have been a subject of change for many decades under various administrations. It remains to be seen what improvements might be implemented in the future with regards to data collection and reporting. Hopefully, it will symbolize a genuine step forward.

As you think about that, have an awesome rest of your day. Go make some great things happen. We’ll talk to you again tomorrow.

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