Don’t Put a Social Security Hater in Charge of Our Economic Data
On Monday, U.S. President Donald Trump nominated EJ Antoni, the chief economist at the Heritage Foundation, to lead the Bureau of Labor Statistics, or BLS. The nomination came 10 days after Trump fired Erika McEntarfer, baselessly accusing her of having “rigged” the July jobs report, which showed a slowing labor market and contained large downward revisions to payroll employment for the previous two months. Antoni, in line with Trump’s false assertions of fraud, has proposed halting the monthly jobs report entirely.
Antoni is not the sort of figure you want at the helm of a statistical agency. He has a long history of egregiously misrepresenting BLS data or, perhaps worse, misunderstanding it in extremely basic ways. He has called Social Security a “Ponzi scheme” and said that we “need to sunset the program.” His nomination has been panned by figures across the political spectrum. Stan Veuger of the conservative American Enterprise Institute, for instance, minced no words in his statement to The Washington Post: “He’s utterly unqualified and as partisan as it gets.”
The partisan transformation of BLS holds untold dangers, given that BLS data is baked into our economic policy. Policymakers look at the rates of unemployment and inflation when setting policy, of course, but by law, several BLS data series also provide for the automatic adjustment of social insurance programs and welfare benefits. Juking the stats could harm the massive number of people that make use of these programs.
The most obvious way that BLS data affects our safety net is through the cost-of-living adjustment (COLA) afforded to retirees on Social Security—an annual benefit boost meant to keep up with inflation. The COLA is calculated using BLS’ Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), and in addition to retirees, people on Social Security Disability Insurance, Supplemental Security Income, and Veterans Disability Compensation receive COLAs. For many of the people on these programs, the benefits make up a significant chunk of their income. Roughly 40% of Social Security recipients receive more than 50% of their income from the program, for instance.
CPI data affects a number of other benefit programs as well. The Department of Agriculture uses CPI data to determine the cost of the Thrifty Food Plan, which is in turn used to calculate benefit allotments for the Supplemental Nutrition Assistance Program (SNAP), also known as food stamps. The Department of Housing and Urban Development uses CPI data in the calculation of Fair Market Rents, a metric which determines the benefit amount for housing vouchers, among other applications. Eligibility for SNAP, Medicaid, and (in most states) Temporary Assistance for Needy Families is tied to the federal poverty level, which the Department of Health and Human Services updates annually using CPI data.
If Antoni is able to make inflation look artificially low to benefit Trump politically, anyone who receives any kind of inflation-adjusted income should feel cheated.
In all, according to the Bureau, “The CPI affects the income of more than 108 million people because of statutory action.” In other words, one-third of Americans have a source of income whose relationship to BLS data is written in the law. Virtually all of us will at some point in our lives receive benefits for which this is the case—assuming that Antoni is unsuccessful in sunsetting Social Security. The relationship between the CPI and your income also extends beyond public benefits: It is widely used in employment contracts, for example, for workers’ annual cost-of-living raises (especially in unionized workplaces).
Manipulating the stats is easier said than done, but if Antoni is........
© Common Dreams
