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US Economic Data Under Threat: MIT Sloan Warns of Reliability Crisis

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America's economic data infrastructure faces mounting threats that could undermine decision-making across government, business, and investment. MIT Sloan professor Roberto Rigobon warns that declining survey response rates, shrinking agency budgets, and political interference are creating dangerous gaps in the nation's statistical system. The 13 major U.S. statistical agencies that track labor, health, economics, and agriculture are struggling to maintain accuracy.

Survey response rates have plummeted as Americans increasingly ignore phone calls and government outreach. Meanwhile, agencies like the Bureau of Labor Statistics and Census Bureau face budget cuts that limit their ability to adopt new technologies. The USDA's recent decision to halt its annual food insecurity survey exemplifies how data gaps are widening. Political actions such as dismantling advisory committees and dismissing statistical leaders erode transparency, while government shutdowns can cost agencies an entire month of data collection.

Private-sector data offers some solutions but cannot fully replace official statistics due to coverage gaps, commercial incentives, and lack of transparency. Businesses must speak up against policies that undermine data integrity, particularly regarding tariffs that act as hidden taxes. The authors emphasize that protecting America's statistical system isn't just about preserving numbers—it's about maintaining the foundation for sound economic decisions by policymakers, investors, and households alike.