The firing of the head of the Bureau of Labor Statistics by President Donald Trump after a weak July jobs report could ultimately harm businesses and the economy, according to some Northeastern University economists. The jobs report also raised enough economic concerns that markets tanked. Northeastern University economists say the report and the ensuing reaction reveal a crisis in confidence.
“The data that the government has been producing is absolutely go-to information that helps businesses make the most important decisions about the future and how to invest today that they undertake,” says Gastón de los Reyes, associate teaching professor of international business and strategy at Northeastern University. “When the data is not reliable, we move from the paradigm of doing business in the gold standard economy for quality of data to the sorts of expectations businesses have in emerging markets.”
