Business
The Importance of Reliable Government Data
Explore the significance of accurate and dependable government data in decision-making processes, policy formulation, and public accountability. Learn why reliable data is crucial for informed governance and effective public services.
Federal Reserve officials rely on government data to make decisions regarding interest rates, while Congress and the White House use it for policy-making related to jobless benefits and stimulus payments. Additionally, investors heavily rely on data reports for making financial decisions.
Challenges to Data Integrity
A recent study by the American Statistical Association raises concerns about the integrity of government statistics. While the data is currently deemed reliable, the report warns of potential threats such as shrinking budgets, declining survey response rates, and the risk of political interference.
The study, titled “The Nation’s Data at Risk,” compares the statistical system to essential infrastructure, stressing the importance of addressing vulnerabilities before they escalate. Nancy Potok, former chief statistician of the United States and one of the report’s authors, emphasized the need to take preventive measures to avert a future crisis.
Risks to Economic Data
The report highlights the risks facing various federal government statistics, including those related to education, health, crime, and demographics. Of particular concern are economic data, given its significance to policymakers and investors.
Most economic data is derived from surveys conducted with households and businesses. However, survey response rates have drastically declined in recent years, mirroring a broader trend in both public and private surveys. For instance, the response rate to the Current Population Survey, a key source for unemployment and labor force statistics, has dropped to around 70% from nearly 90% a decade ago.