Friday, January 15, 2010

Boskin: U.S. Economic Data Is Almost Criminal

Former White House economist Michael J. Boskin says American investors no longer place much credibility in the economic and fiscal statistics being reported by the U.S. government, and are “increasingly inclined to disbelieve them.”

Boskin, the one-time economic adviser to President George H.W. Bush, says that solid, reliable information is needed by investors, because “as a society, and as individuals, we need to make difficult, even wrenching choices, often with grave consequences.”

To base those decisions on misleading, biased, or manufactured numbers, is not just wrong, “but dangerous,” he wrote in The Wall Street Journal.

But, due to the obvious fudging of numbers involved in the government’s health care insurance industry reform effort, most Americans now believe the health-care legislation will actually raise their insurance costs, rather than reduce them, and increase the federal budget deficit, rather than contain it. (more)

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