CEA chairman Hassett says 2016 election was a turning point; you can’t believe him.
Kevin Hassett unveiled a series of charts that appear to show a surge in corporate investment, blue-collar jobs, business startups and small-business optimism after the election two years ago.–Jeffry Bartash, MarketWatch
I watched Kevin Hassett explain these charts which illustrate how a happy-go-lucky CEA Chair lies. Please refer to the White House release of Hassett’s charts.
Hassett’s first three charts refer to information from The National Federation of Independent Business (NFIB). This is not a reliable source; I will say no more about these first three charts. (NFIB is often mentioned in support of Tom Reed.)
The next three charts use data from the reliable Bureau of Economic Analysis. The original chart for “real private nonresidential fixed investment” is shown at the left. Compare this with Hassett’s chart for “real private nonresidential fixed investment” which shows a marked change on the day of the election. It is a clear example of lying with statistics. Hassett has carefully chosen the horizontal and vertical scales to make a misleading point. One should be surprised by the marked change in the data if nothing else; economic data seldom shows such marked changes if ever.
Hassett also misleads by choosing trend lines based on a short section of only part of the data, which is again unfair. The last three charts are much less striking than the charts featured at the top of the page; they are perhaps reliable, but again the trend lines are chosen to falsely emphasize the Trump Administration’s message. Please don’t be taken in by this administration’s lies.