Monday, November 23, 2015

Beware of Economists Calling for More Government Funding of Government Data Collection

Sixty-three distinguished economists signed an open letter to Congress urging increased federal spending for government agencies charged with collecting economic data.

In particular, they want more data on assessing GDP, understanding labor markets, and better statistical poverty measures.

What are economists likely to do with better data if their letter succeeds?

My guess is to advocate more funding to fight poverty, not more efficient use of existing appropriations.

More government funding to support greater participation in labor markets, not removing regulations, high taxes, and other impediments to labor market participation.

More stimulus to increase GDP, not less government interference in the economy.

More redistribution to reduce income inequality.

And so on, and so forth.

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