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Disbanded US advisory committee raises concerns about economic data integrity
Disbanded US advisory committee raises concerns about economic data integrity
Disbanded US advisory committee raises concerns about economic data integrity

Published on: 03/18/2025

Description

Erica Groshen received an email on March 4th from the federal government announcing the termination of the Federal Economic Statistics Advisory Committee, on which she served. The email stated the group's needs had been fulfilled.

Groshen, a former Commissioner for the Bureau of Labor Statistics during the Obama Administration, expressed surprise at the news.

"The language of it, to me, was particularly disturbing," she said. "It was very terse. It was like three sentences or something like that."

The group's charter outlined its mission to advise the Bureau of Labor Statistics, the Bureau of Economic Analysis, and the Census Bureau on practices to ensure their reports are accurate and timely. This is particularly crucial for a nation that leads the global economy.

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Groshen found it perplexing that the committee's annual budget was $120,000, a minimal amount compared to the $2 trillion in reductions sought by the Department of Government Efficiency. Her surprise transformed into concern.

"Statistical agencies live and die by trust," Groshen stated. "In order for federal stats to be worth the taxpayer dollar, people have to believe they are objective. They have to be produced with objectivity without any interference from elected officials."

Groshen fears that disbanding the committee may open the door to manipulation for political or other motives. Notably, the email came just days after Commerce Secretary Howard Lutnick announced plans to revise the formula for calculating gross domestic product (GDP).

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Lutnick argued that removing government spending from the equation would yield a more accurate assessment of the economy, potentially shielding against adverse effects of cuts made during the Trump administration.

While Groshen has not observed any evidence of data manipulation, she is concerned about the weakening of the checks and balances designed to prevent such actions.

"The possibilities of tampering are pretty broad, right?" she questioned. "You could alter the methodology."

This story was initially reported by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.

News Source : https://www.kbzk.com/us-news/disbanded-us-advisory-committee-raises-concerns-about-economic-data-integrity

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