Students' Distrust of the Government's Economic Data

Résumé du livre

A survey of our introductory economics students reveals much distrust of the government's economic data, such as the unemployment rate. Large majorities of the students believe that the government abuses the seasonal adjustment process to make the economy appear stronger than it is and that the government manipulates the release dates of the economic indicators for political advantage. The distrust, which is unwarranted, is especially disturbing because the unemployment rate is derived from a survey of households, and if the respondents in the households distrust the process, they may respond dishonestly to the survey; i.e., their suspicions can be self-fulfilling. Teachers of macro principles would therefore perform a useful service by dispelling their students' cynicism.