Bush Repeatedly Hiding Bad Economic News

The administration muzzles routine economic information that's unfavorable. Last year, for example, the administration stopped issuing a monthly Bureau of Labor Statistics report, known as the Mass Layoff Statistics program, that tracked factory closings throughout the country. The cancellation was made known on Christmas Eve in a footnote to the department's final report—a document that revealed 2,150 mass layoffs in November, cashiering nearly a quarter-million workers. The administration claimed the report was a victim of budget cuts. After the Washington Post happened to catch this bit of data suppression, the BLS report was reinstated. (Interestingly, President George H.W. Bush buried these same statistics in '92, also during a period of job losses. They were revived by President Clinton.)

The Bush economic team has snuffed its own reports when they reach conclusions that don't match the administration's rosy scenarios. The administration deep-sixed a study commissioned by then Treasury Secretary Paul O'Neill that predicts huge budget deficits well into the future.

The administration also muffled a customary report whose findings would have forced key corporate supporters to pay more to their employees. The annual Adverse Effect Wage Rate establishes the minimum wage that can be paid each year to about 50,000 agricultural "guest workers" in the H2A Program. From AEWR's 1987 inception until 2000, the Department of Labor released the report in February. But in 2001, DOL withheld the wage figure until August, and only published it after the Farmworker Justice Fund threatened a lawsuit. In 2002, the DOL held up the report until May, again releasing it only after the prospect of legal action. The delays helped big agricultural firms, largely in the tobacco states and the South, by allowing them to pay their field workers last year's lower wages, saving the employers millions of dollars. Among those benefiting politically were Labor Secretary Elaine Chao's husband, Sen. Mitch McConnell of Kentucky, whose state relies on several thousand guest workers in its tobacco fields and who receives large contributions from agricultural interests.

In a superb analysis of the budget in the June Harper's, Thomas Frank noted that in 2002 the administration declared an $18 trillion shortfall in Social Security and Medicare—about five times the current national debt. Frank notes that in order to arrive at the $18 trillion figure—since Social Security is currently in surplus—the administration used a "cumulative seventy-five-year estimate [Frank's itals] based on extreme long-term projections ... ." Meanwhile, even as it relies on 75-year projections for Social Security, the same document replaces traditional 10-year budget projections with five-year ones, claiming the longer-term numbers were unreliable.

The Department of Labor removed a report showing the real value of the minimum wage over time, claiming it was "outdated." With no minimum wage hike since 1997, the Web site would have shown minimum-wage workers faring increasingly poorly under the Bush administration, while their real income went up under Clinton.

Earlier this year, a study predicting mediocre job growth from Bush's proposed $674 billion economic stimulus plan disappeared from the Council of Economic Advisers' Web site. The study forecast an average increase of only 170,000 jobs—0.1 percent of the workforce—every year through 2007. The study was pulled just after a major Jan. 7 Bush budget speech to the Economic Club of Chicago. "In the out years, by their own estimate, their plan is a job and growth killer," says Jared Bernstein, economist at the Economic Policy Institute.

Slate also noted a Rumsfeld Whopper of the Week.