BLS Caught Fabricating Wage Data

While it’s not the first time we have observed the BLS manipulate data (the last time was in “This Is What Happens When The Bureau Of Labor Statistics Is Caught In A Lie“), never before had we actually caught the Bureau Of Labor Statistics openly fabricating data. Until now.

As reported earlier today, in one of the most closely watched statistics in today’s payrolls report, the BLS reported that the annual increase in Average Weekly Earnings was a whopping 2.9%, above the 2.5% expected, and above the 2.5% reported last month. On the surface this was a great number, as the 2.9% annual increase – whether distorted by hurricanes or not – was the highest since the financial crisis.

However, a problem emerges when one looks just one month prior, at the revised August data.

What one sees here, as Andrew Zatlin of South Bay Research first noted, is that while the Total Private Average Weekly Earnings line posted another solid increase of 0.2% month over month, an upward revision from the previous month’s 0.1%, when one looks at the components, it become clear that the BLS fabricated the numbers, and may simply hard-coded its spreadsheet with the intention of goalseeking a specific number.

Presenting Exhibit 1Table B-3 in today’s jobs report. What it shows is that whereas there was a sequential decline in the Average Weekly Earnings for Goods Producing and Private Service-producing industries which are the only two sub-components of the Total Private Line (and are circled in red on the table below) of -0.8% and -0.1% respectively, the BLS also reported that somehow, the total of these two declines was a 0.2% increase!

Another way of showing the July to August data:

  • Goods-Producing Weekly Earnings declined -0.8% from $1,118.68 to $1,109.92
  • Private Service-Providing Weekly Earnings declined -0.1% from $868.80 to $868.18
  • And yet, Total Private Hourly Earnings rose 0.2% from $907.82 to %909.19

What the above shows is, in a word, impossible: one can not have the two subcomponents of a sum-total decline, while the total increases. The math does not work.

This, as Zatlin notes, undermines not only the labor inflation narrative, but it puts into question the rest of the overall labor data, and whether there are other politically-motivated, goalseeked  “spreadsheet” errors.

We have sent an email to the BLS seeking an explanation for the above data fabrication, meanwhile here is what likely happened: a big, juicy fat-finger error, whether on purpose or otherwise because if one looks at the finalized July weekly earnings of $907.82, it’s precisely the same as what the August preliminary wage number was as released last month, also $907.82.  For the excel fans out there, it means that the August totals were simply hard coded when the BLS shifted cells in the spreadsheet, becoming July.

Of course, if the BLS confirms that this was a transposition fat finger error, it would also imply that the August number is in fact, the September data, a rather massive mistake which today has had a impact on trillions dollars worth of assets.

Source: BLS

read more: http://www.zerohedge.com/news/2017-10-06/bls-caught-fabricating-data

Shutting down fake news could move us closer to a modern-day ‘1984’ – The Washington Post

Fake-News
February 10

Flemming Rose is a senior fellow at the Cato Institute. Jacob Mchangama is director of the Copenhagen-based think tank Justitia.

Remember George Orwell’s Ministry of Truth? In his dystopian novel “1984,” its purpose was to dictate and protect the government’s version of reality. During the Cold War, Orwell’s book was banned behind the Iron Curtain, because readers perceived the novel as an allegory for their own repressive regimes.

It was a serious crime to distribute information defaming the Soviet social and political system. Such criminal laws were widely used by the Kremlin to silence dissidents, human rights activists, religious movements and groups fighting for independence in the Soviet republics. Similar laws were on the books in East Germany, Poland and other Eastern bloc countries.

Thankfully, today this landscape is much changed, but increasingly there are disturbing echoes of the past. Amid a debate about the rising influence of fake news and the danger it poses to the political and social order in the West, democratic politicians in Europe have proposed sanctions — and even prison terms — for those found responsible for distributing false information.

Read More: www.washingtonpost.com/opinions/shutting-down-fake-news-could-move-us-closer-to-a-modern-day-1984/2017/02/10/fd02d29a-ef1a-11e6-9662-6eedf1627882_story.html?utm_term=.1571b3272c01

Bernie Goes Dark After Saying “CNN Fake News”

Surprise, Politifact says Donald Trump made a FALSE statement when he tweeted that Bernie was cut off for using the term “fake news” on CNN.

Politifact tells us, he was cut off because of technical difficulties!

Thank you Poltifact, “winner of the Pulitzer Prize,” what would we do without you?

The clip…

The Truth About Obama’s Job Record | RealClearPolitics

The BLS considers someone working 2 hours a week just as employed as someone working 40 hours a week. The employees certainly wouldn’t consider these jobs equivalent, but they are equivalent for purposes of the official unemployment rate.

By Andy Puzder – February 12, 2015

Since December of 2012, I’ve written a number of articles on how the Bureau of Labor Statistics’ (“BLS”) official unemployment rate is a poor barometer for measuring labor market health principally because of how the BLS determines who is in the labor force. The BLS removes people from the labor force unless they’ve looked for a job in the past 30 days. This is like looking at a professional baseball player’s batting average but ignoring the at bats where he didn’t get a hit unless they happened in the last 30 days. Doing so might tell you something, but it wouldn’t tell you what kind of season he’s having. This is part of the reason why Gallup Chairman Jim Clifton recently wrote in an excellent article that the official unemployment rate is “extremely misleading.”

Read More: www.realclearpolitics.com/articles/2015/02/12/the_truth_about_obamas_job_record_125568.html