Ray Dalio and David Sacks Criticize Labor Bureau Commissioner's Firing Over Flawed Economic Data

Ray Dalio and David Sacks have expressed criticism of the Bureau of Labor Statistics for its flawed system of producing economic estimates, with no clear strategy to fix it. Dalio said he "probably would have fired the head of the Bureau of Labor Statistics too" following a large downward revision to US jobs data. Economists Jeremy Siegel and Mark Cuban also weighed in on the issue, with Siegel calling for an "oracle-like data provider" and Cuban questioning who would pay for it.

Billionaire investor Ray Dalio has joined a chorus of critics voicing concerns over the Bureau of Labor Statistics' (BLS) handling of economic data, following a significant downward revision to U.S. jobs data. Dalio, the founder of Bridgewater Associates, stated that he "probably would have fired the head of the Bureau of Labor Statistics too" after the revision, which was the largest since 1978 [1].

The revision, which reduced the jobs data for May and June by 258,000, has sparked debate among economists and investors. Dalio believes that the BLS lacks a clear strategy to address the outdated and flawed system for producing economic estimates. He urged President Trump to clarify his rationale behind dismissing BLS Commissioner Erika McEntarfer, suggesting that if the move was politically motivated, it would be a significant issue [1].

David Sacks, a prominent venture capitalist, also criticized the BLS for its poor data quality, stating that no hedge fund manager would keep their job if they routinely produced such large errors. Economist Jeremy Siegel echoed these sentiments, appearing on CNBC's "Squawk Box" to question why the BLS did not provide an explanation for the "biggest mistake in 50 years" [1].

The debate over the BLS's data handling extends beyond the revision. Investor Chamath Palihapitiya proposed an "oracle-like data provider" for critical economic information, given the number of revisions in U.S. jobs data over the years. However, his proposal received pushback from investor Mark Cuban, who questioned who would pay for such a system [1].

President Trump defended his decision to fire McEntarfer, accusing her of rigging the July jobs report without providing evidence [2].

The criticism highlights the importance of accurate and reliable economic data for investors and policymakers. As the debate continues, it remains to be seen how the BLS will address these concerns and restore confidence in its data.

References:
[1] https://www.benzinga.com/markets/economic-data/25/08/46846833/ray-dalio-david-sacks-say-they-would-have-fired-labor-bureau-commissioner-trump-removed-heres-why
[2] https://www.cbsnews.com/chicago/video/trump-defends-decision-on-firing-bureau-of-labor-statistics-commissioner/