Trumponomics What Happens When US Economic Data Can’t Be Trusted?
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Mar 26, 2025 David Wilcox, director of US economic research for Bloomberg Economics, and Molly Smith, US economics editor for Bloomberg, delve into the troubling credibility of US economic data. They discuss recent firings of independent regulators and the implications for data integrity. The conversation explores historical legal battles, stressing the enduring impact on economic governance. They highlight potential political interference and the urgent need for transparency, drawing parallels to past administrations that compromised data validity.
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FDR and the FTC
- FDR tried to fire FTC commissioner William Humphrey for differing policy views, despite legal protections.
- Humphrey sued, and his estate won back wages after his death, setting a precedent for agency independence.
Humphrey's Executor
- The Supreme Court's Humphrey's Executor decision protects agency independence, including the Federal Reserve's.
- However, recent rulings have weakened this precedent, raising concerns about the Fed's future autonomy.
Loss of Statistical Expertise
- Statistical advisory committees, comprised of unpaid volunteers, provided valuable expertise to agencies like the BEA and BLS.
- These committees have been terminated, potentially impacting the quality and relevance of economic data.