WASHINGTON, D.C. — In his new book “The Mismeasurement of America” former Comptroller of the Currency Gene Ludwig, in his capacity as chairman of the non-profit Ludwig Institute for Shared Economic Prosperity (LISEP), chronicles why public perceptions of the economy differ so significantly from what government-issued headline statistics lead us to believe. The truth, he says, is somewhat disconcerting: The statistics are misleading.
“Despite headlines heralding growth and prosperity, most Americans have fallen behind,” Ludwig said. “They’re working harder year-upon-year not to get ahead but to merely survive. For them, the American dream appears to be slipping farther and farther away.”
Specifically, Ludwig notes how outdated definitions of economic indicators—some over a century old—distort perceptions of unemployment, wages, inflation, and upward mobility and growth. For instance, unemployment statistics count an individual as employed even if they’ve only worked a few hours every two weeks. Meanwhile, inflation is measured by an expansive basket of more than 80,000 items, instead of focusing on the core necessities that consume nearly the entire budget of the average low- and middle-income household.
“The real issue is how these data are presented,” Ludwig said. “At LISEP, we have long advocated for more-responsive and real-world-reflective metrics to measure economic performance. Relying on less accurate, incomplete, and less-transparent data will only lead to misinformed economic policy.”
In “The Mismeasurement of America” Ludwig presents new, more-accurate ways to understand what’s really happening in the American economy, proposing economic metrics that are truly reflective of the real world.
“Sound economic policy, like a good weather forecast, relies on timely, comprehensive data,” Ludwig said. “But unlike an errant weather forecast—which might lead to minor inconveniences like a wardrobe mismatch or getting caught in the rain without an umbrella—inaccurate economic data could result in policy that means the difference between prosperity and recession.”
“The Mismeasurement of America” is now available for pre-order through major booksellers and set for release Sept. 30.
