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Erosion of the ability to accurately describe our reality hobbles every aspect of our collective decision-making. The current program of erosion is steady, deliberate, and already well underway.
Alarms are sounding across the political and ideological spectrums about America’s collapsing federal data structure. But what is the big deal? Why does access to data, specifically from the federal government, matter so much?
At the heart of all work in this space are three questions:
A society cannot make good decisions without knowing how prior decisions turned out, assessing the current situation, and developing reasonable predictions about possibilities under consideration.
Federal statistical work is how we find out what is going on with the 300 million people and 11 million businesses across the complex network of federal, state, and local systems that make up the world’s largest economy. Issues at that scale are too big for intuition or “common sense.” We need comprehensive information produced by rigorous, capable people who are not afraid to tell us the truth. We should be deeply and profoundly alarmed by the offer of anything less.
Each researcher approaches their work from a different direction with a different area of focus, which results in a wide range of conclusions on a variety of topics. But the common ground is the data.
Voters are beginning to understand the damage our economy and our society sustains when we turn our backs on the truth.
Reliable, comprehensive, nonpartisan federal datasets like the American Community Survey from the Census Bureau, historical data tables from Internal Revenue Service Statistics of Income, economic reports from the Bureau of Labor Statistics, scoring from the Joint Committee on Taxation, estimates from the Congressional Budget Office, and other quality federal data products provide a stable point of reference to which most agree to calibrate their work, even though there may be different policy perspectives. We know we are all standing on the same ground, and that the ground is reasonably solid.
Until now, these data have been produced by teams of dedicated experts who understand that their job is to collect and report the numbers as accurately as possible. Sometimes the best available methods are imperfect. Sometimes estimates need adjustment based on the latest information. Sometimes the team responsible for a particular report does not have the ideal amount of funding or enough staff. But the reports have always been created in good faith by extremely competent people. The current threats to that are inexcusable.
Erosion of the ability to accurately describe our reality hobbles every aspect of our collective decision-making. The current program of erosion is steady, deliberate, and already well underway.
Statistical agencies have been aggressively hollowed out in terms of both funding and staff and are notifying the research community to expect certain products to be released late or not at all. Important research programs are suspended indefinitely.
Information on entire subjects—such as race, gender, and climate—is no longer being collected and, in some cases, being excised wholesale from existing data. Legislators are arguing that publicly traded corporations should not have to disclose critical information about their activities. Careful, diligent staffers are losing their positions for doing their jobs and, if replaced at all, being replaced by people who think good data science begins and ends with typing a prompt into a chatbot.
Highly qualified leaders defending data integrity, privacy, and the mission of their agencies are being kicked to the curb in favor of individuals whose primary qualification appears to be willingness to produce reports that say whatever the current administration wants and suppress those that do not.
The ability to find out what is going on in our country is under attack. That is definitely a big deal, but the research community is not taking it lying down. The authoritarian playbook always includes attacking the truth, so this did not come as a surprise. As soon as the 2024 election results were called, data preservation coalitions got to work archiving existing data in multiple locations. The agency leaders are not going easily or quietly. And voters are beginning to understand the damage our economy and our society sustains when we turn our backs on the truth. American civil resistance has a proud history, and this assault on our public information is an opportunity for involved citizens to prevent authoritarianism from taking hold.
An alarming approach is emerging on job creation, economic growth, and tax collections: If reality doesn’t conform to the narrative, destroy the evidence.
Last week, U.S. President Donald Trump fired the commissioner of the Bureau of Labor Statistics, or BLS, in retaliation for publishing weak jobs numbers in the bureau’s monthly employment report. The Trump administration rightly received criticism for spooking investors and undermining the creditability of government data for this reckless move. But this is just the latest act in a broader erosion of the federal data infrastructure.
President Trump provided zero evidence to support his claim of a “rigged” report created to make him look bad. Janet Yellen, the former Treasury secretary and chair of the Federal Reserve, described the firing as “the kind of thing you would only expect to see in a banana republic.”
It’s crucial to understand the BLS is an independent, non-partisan, and highly respected agency tasked with producing data on jobs, wages, and prices. This data serves as the backbone for a broad swath of public and private decision-making. Researchers depend on these data to study the impacts of government decision-making on the economy, budgets, and people’s lives.
Trump’s latest attack on the BLS contributes to an alarming trend. For years, federal statistical agencies have been chronically underfunded. Under the Trump administration, additional budget cuts, federal hiring freezes, and mass layoffs are further straining agencies.
Distrust in data will harm every American, leaving businesses less able to prepare for a recession, labor unions less equipped for potential layoffs, families less able to predict how far their paycheck will go.
The collection of quality data is often labor-intensive, sometimes requiring massive field operations. When agency funding and staff levels cannot support the full collection effort, we risk losing the kind of data that is the hardest, and most essential, to collect: data in rural areas, smaller geographies, and often historically undercounted populations. This kind of slow data erasure poses serious challenges for tax policy research and modeling.
For example, the Census Bureau employs thousands of field representatives to interview households and businesses for a range of surveys. But since January, 1,300 Census Bureau employees have reportedly left, further hamstringing data collection in an already understaffed agency. Previously, when the agency faced funding shortfalls in 2016, it cancelled its field testing aimed at improving counts in Spanish-speaking areas and on Indigenous reservations for the 2020 Census. These hard-to-count communities are often central to our analyses of tax equity.
BLS faces similar challenges. Inflation data relies on data collectors to record price data from thousands of retailers across the country. These operations are being forced to scale back due to shrinking resources and in some cases have stopped altogether. Despite this, Trump’s 2026 budget proposal reduces the BLS budget by $56 million and proposes a major restructuring of the agency. This data is foundational to many aspects of modeling; it allows us to compare the impact of policy over time in “real” terms and project policy impacts out into the future.
At the Internal Revenue Service (IRS), staffing levels in the Research, Applied Analytics, and Statistics office have decreased by 29% since January. As a result, the IRS has indefinitely postponed its Joint Statistical Research Program, which produced original research and novel data sets that the Institution on Taxation and Economic Policy frequently relies on to inform our own modeling of tax policy and taxpayer behavior.
Distrust in data will harm every American, leaving businesses less able to prepare for a recession, labor unions less equipped for potential layoffs, families less able to predict how far their paycheck will go. At the height of Covid-19 deaths in June 2020, Trump famously said, “if we stop testing right now, we’d have very few cases if any.” A similar approach is emerging on job creation, economic growth, and tax collections: If reality doesn’t conform to the narrative, destroy the evidence.
The federal government’s statistical agencies are full of nonpartisan career economists and statisticians who work hard to be responsible stewards of our nation’s data. And they continue to do so even under tight resource constraints and amid a fiercely partisan political environment. But last week’s attacks on BLS fuel growing fears among researchers and policy analysts that the data we rely on to understand policy may one day be compromised, suppressed, or deleted altogether.
How can anyone in the future trust the data that emerges from the Bureau of Labor Statistics when the person in charge of the agency has to come up with data to Trump’s liking in order to stay in the job? Answer: They cannot.
I spent much of the 1990s as U.S. secretary of labor. One unit of the Labor Department is the Bureau of Labor Statistics.
I was instructed by my predecessors as well as by the White House, and by every labor economist and statistician I came in contact with, that one of my cardinal responsibilities was to guard the independence of the Bureau of Labor Statistics (BLS). Otherwise, this crown jewel of knowledge about jobs and the economy would be compromised. If politicized, it would no longer be trusted as a source of information.
So what does President Donald Trump do? With one fell swoop Friday he destroyed the BLS.
Trump didn’t like the fact that the BLS revised downward its jobs reports for April and May. Revisions in monthly jobs report are nothing new. They’re made when the bureau gets more or better information over time.
When Trump doesn’t like the message he shoots the messenger, and replaces the messenger with someone who will come up with messages he approves of.
Yet with no basis in fact, Trump charged that Erika McEntarfer, the commissioner of labor statistics, “rigged” the data “to make the Republicans, and ME, look bad.” Then he ordered her fired and replaced with someone else—presumably someone whose data Trump will approve of.
How can anyone in the future trust the data that emerges from the Bureau of Labor Statistics when the person in charge of the agency has to come up with data to Trump’s liking in order to stay in the job? Answer: They cannot. Trump has destroyed the credibility of this extraordinarily important source of information.
When Trump doesn’t like the message he shoots the messenger, and replaces the messenger with someone who will come up with messages he approves of.
So we’re left without credible sources of information about what is really occurring.
Trump is in the process of trying to do the same thing with the Federal Reserve—demanding that Jerome Powell, the Fed’s chair, cut interest rates. Trump is even threatening Powell with a Trumped-up expose of Powell’s supposed extravagance in refurbishing the Fed as a means of forcing Powell to do his bidding or resign.
What happens to the Fed’s credibility if Powell give in to Trump? It loses it. In the future, we wouldn’t have confidence that the Fed is fighting inflation, as it should. And without that confidence, longer-term interest rates will spike because investors will assume that there’s no inflation cop on the beat, and therefore will demand a higher risk premium.
Trump hates facts that he disagrees with. That’s why he’s dismembering the Environmental Protection Agency, which has repeatedly shown that climate change isn’t a “hoax,” as Trump claims, but more like a national emergency. It’s why Trump is attacking American universities, whose whose scientists are developing wind and solar energy, and whose historians have revealed America’s tragic history of racism and genocide of Indigenous people. He is killing off the Centers for Disease Control and Prevention and the National Institutes of Health, which are showing the sources of sickness and disease and how we can guard against them.
This is a man and a regime that doesn’t want the public to know the truth. He is turning America into George Orwell’s dystopian 1984.
This is what fascism looks like, friends.
We must fight this with everything we have.