Federal economic data is considered a critical component of the country’s infrastructure, and its quality and reliability have significant implications for the economy and individuals’ livelihoods. However, the data collection process is facing challenges due to declining funding, response rates, and public trust.
One of the primary concerns is the increasing difficulty in surveying people, which is a key method for obtaining economic information. Response rates have plummeted in recent years, leading to more volatile and potentially biased data. This has led to criticism and even questioning of the legitimacy of economic figures by some policymakers.
Statistical agencies have been working to modernize data collection methods, such as adding online-based response components, but this has been hampered by funding constraints. The Census Bureau has been seeking funding to update its Current Population Survey, which is a major source of employment data, but it has been unable to do so.
Some proposed government streamlining efforts pose a significant risk to federal data, as statistical agencies are under discretionary funding and may be cut if budget cuts are made. This could have serious consequences for economic decision-making, as data is critical for policymakers, businesses, and investors to make informed decisions.
While some proposals suggest consolidating statistical agencies, experts believe that this could be beneficial if done the right way. There are also potential opportunities to explore partnerships with universities and cut back on non-essential programs.
Several organizations actively archive government websites and data during times of administration changes, which provides a level of protection for critical economic data. However, the extent to which data may be scaled back or information removed could have chilling effects for underserved communities, particularly those in the LGBTQ+ community.
Experts warn that the lack of data and understanding about marginalized communities can have serious consequences for addressing larger economic issues and employment problems. Ultimately, the health and wellbeing of Americans could be impacted if critical economic data is compromised.
