Forecasts for America’s near future are darkening. Many experts fear the US could follow Greece’s fate if economic data is falsified.
Tensions over the country’s economic outlook escalated after US President Donald Trump dismissed Erica McEntarfer, head of the Bureau of Labor Statistics. Oddly, the reason for such a drastic decision is the release of disappointing employment figures. Against this backdrop, many analysts grew seriously concerned that the United States could end up repeating the fate of Greece or Argentina.
CNN reminded readers of what happens to countries punished by investors for publishing false statistics. Greece and Argentina had already found themselves in such a trap. However, this time the situation may prove different, and the accusations unfounded.
The news agency noted that there is currently no evidence that the Bureau falsified any data. Relying solely on statements from the White House does not make any sense, analysts argue. According to Alan Blinder, former Vice Chair of the Federal Reserve, McEntarfer’s dismissal is “a very dangerous step down a slippery slope.” The next issue could be outright manipulation of data. CNN stressed that “the health of the entire US economy is now at stake — an economy on which nearly everyone on Earth depends.”
As for Greece and Argentina, their cases unfolded as follows. In Greece, financial authorities resorted to fraud, trapping the country in an economic deadlock. The fallout proved even harsher than that of the 2008–2009 global financial crisis. Creditors, alarmed by Greece’s true fiscal state, demanded higher bond yields. This was followed by severe austerity measures, which in turn sparked a massive wave of public anger.
Argentina took a similar path. Its authorities also opted to falsify economic data, which left the country stuck with a “junk” credit rating for many years.
In early August, Donald Trump dismissed McEntarfer, calling her “a Biden political appointee.” The report that triggered her ouster was deemed by the White House chief to have been falsified in favor of “radical left Democrats,” who, in his view, downplay the real successes of his administration.
