Impact of Funding Cuts on Data Collection

Government agencies responsible for collecting essential economic data, such as the Bureau of Labor Statistics (BLS) and the Census Bureau, are facing significant funding constraints that threaten the quality of their data. These budget cuts have already resulted in reduced sample sizes for surveys, which diminishes the representativeness and reliability of the collected data. For instance, the BLS announced it had to cut sample sizes from 60,000 households due to budget limitations, a move that raises concerns about data accuracy. The reduction in funding could hinder the agencies' abilities to conduct comprehensive surveys necessary for informed decision-making by policymakers and economists.