When the BLS Boss Got Dismissed: A Job Report Drama
The Ron Paul Institute announced that the Bureau of Labor Statistics (BLS) head, Dr. Erika McEntarfer, was among the most recent casualties of President Trump’s “you’re fired” roster.
Why She Got the Axe
Trump said the reason was that Dr. McEntarfer “tweaked” employment numbers—a statement that’s as off‑the‑chain as a bad joke. According to the president:
- The updated May and June data showed the U.S. economy added 258,000 fewer jobs than originally reported.
- The July jobs report ended up looking lousy, according to the official.
- All this alleged manipulation was supposedly aimed to ruin Trump’s reputation.
The Aftermath—Public Concern
After the dismissal, people began fretting that the federal government might be twisting the numbers to suit presidential whims. If that trust evaporates, it could influence how investors view U.S. Treasuries.
Why does it matter?
- The value of Treasury bonds depends on the Consumer Price Index (CPI) issued by the BLS.
- Uncertainty about CPI data forces investors to demand higher yields.
- That hike raises the government’s borrowing costs and interest payments.
Bottom Line
A simple bullet point: mistrust in how unemployment and inflation figures are reported can send a ripple through the financial markets and could make creditors think twice before handing out the dollar bills. The real question is whether the data will stay spotless or get a bit grainy under the new regime.
Unveiling the Government’s Numbers Game
Thought it was all clear? Turns out the official stats are a bit of a cheat sheet, and President Trump’s sharp eyes have caught on.
When the Bureau Moved the Goals
Back in 1994, the Bureau of Labor Statistics (BLS) made a sneaky cut: “discouraged” workers—those who’ve given up hunting for jobs—were dropped from the unemployment count. Even more quietly, people working part‑time because they can’t land a full‑time gig were still counted as employed. So a lot of folks whose job situation isn’t great are masked.
John Williams of Shadow Stats claims that adding these hidden “lost” workers would inflate the unemployment rate by almost 20 %.
Inflation’s Dumb Trick
The government’s favorite trick is chained CPI. Imagine your steak price shoots up—so expensive you can’t afford it. Instead of lowering your living standard, the math says it’s fine as long as you can buy a cheaper alternative, like a hamburger. That means the real sting of rising prices is hidden.
Shadow Stats says a clearer inflation calculation could push the rate up to as high as 12 %.
Why It Matters
- Gaslighting the People: The numbers make it look like the economy is cruising when, in reality, many feel the weight of the changes.
- Lowering the Cost‑of‑Living Roll‑Up: A lower headline inflation lets the government offer smaller raise bumps for veterans, Social Security beneficiaries, and others—cutting spending without firing brutal congressional votes.
Trump’s Spot‑Check Plays a Role
Yes, Trump has done a service by pointing out that data may be “stretched.” Critics who worry about the credibility of the numbers are basically in a weird love‑hate relationship with the data: they’re fine with manipulation as long as it supports Trump’s narrative.
What the President Should Do Next
If Trump wants to make sure the stories people read are truly reflective of reality, the next step might be to appoint John Williams of Shadow Stats as the head of the BLS. That’d be a bold move toward transparency.
After all, accuracy matters when people are making decisions about their future. It’s time the numbers weren’t just “smoothed‑over.”