By Brian Klaas
Wednesday, August 13, 2025
In 2013, ahead of a scheduled
visit from President Vladimir Putin to the small Russian town of Suzdal,
local officials worried that he would be disappointed by the dilapidated
buildings. In a modern revival of Grigory Potemkin’s possibly apocryphal
deception of Catherine the Great, they slapped
exterior wallpaper onto buildings, hoping to hide the decaying concrete
behind illustrations of charming village homes. It was intended as a comforting
myth to keep Putin happy. (In the end, Putin never showed up.)
On August 1, President Donald Trump demanded a comforting
myth of his own, one that could have far greater consequences for the world
economy. He began by firing
a skilled economist, Erika McEntarfer, from her job running the Bureau of
Labor Statistics, for a cardinal sin that ordinarily exists only in
dictatorships: producing “bad numbers.” In authoritarian regimes, good numbers
are always right, and if anyone says otherwise—if they are foolish enough to
produce statistics that suggest the economy is souring or that Dear Leader isn’t
producing historic growth and blockbuster jobs numbers—then it’s curtains on
their career (if not their life). As is so often the case with Trump, reality
itself seems to be “rigged.”
Time to fix reality with Potemkin statistics.
This week, Trump named E. J. Antoni, the chief economist
at the Heritage Foundation, as McEntarfer’s replacement, subject to the charade
of Senate Republican rubber-stamping that has become so common in Trump’s
second term. As with despots throughout the world, Trump selected Antoni on the
two criteria that consistently warm a dictator’s heart: loyalty and ideology.
Antoni, who contributed to Project 2025, has a résumé
that’s thin on qualifications. Five years ago, according to his
LinkedIn profile, he completed his doctorate in economics at Northern
Illinois University, after a short stint teaching at Sauk Valley Community
College. His only scholarly publication—ever—appears to be his doctoral thesis,
which has been cited by other economists a grand total of one
time. That sole citation came from a policy briefing written by Antoni’s
then-colleague at the archconservative Texas Public Policy Foundation.
Antoni has shown ignorance of basic economic data,
including in a recent
social-media post supporting Trump’s tariffs, in which he appeared to not
grasp that a major index of import prices did not include tariffs in its
published data. (Several established economists helpfully pointed this out to
him.) Menzie Chinn, a renowned economics professor at the University of
Wisconsin at Madison, has chronicled
a wide array of Antoni’s basic misunderstandings, misrepresentations, and
mistakes. In other words, Antoni would probably not get hired as a junior
economist at the agency he’s now slated to run.
By contrast, McEntarfer received her doctorate from
Virginia Tech in 2002, then worked as an economist in a variety of roles at the
Census Bureau—under both Republican and Democratic presidents—as well as in top
jobs at the Treasury Department and the White House Council of Economic
Advisers. Last year, she was confirmed by the Senate to run the Bureau of Labor
Statistics on a bipartisan
86–8 vote. Then-Senators J. D. Vance and Marco Rubio both voted to confirm
her. During her time in public service—not in academia—she produced at least 44
publications, which have been cited
by other scholars 1,327 times.
But what Antoni lacks in credentials and expertise he
makes up for in his MAGA worldview. On X, he follows a who’s who of Trump
acolytes, including Carpe Donktum, a prolific meme creator who once shared an
AI-generated video depicting Trump killing journalists and critics, and Jack
Posobiec and Mike Cernovich, who both promoted the debunked Pizzagate
conspiracy theory. International investors can see this, too—and they
understand that nonpartisan government officials devoted to statistical
accuracy do not behave like this.
Even conservative economists can see what’s going on.
Stan Veuger, a senior fellow at the American Enterprise Institute, has noted
that economists had hoped that Trump would appoint a competent, fair expert who
could ensure confidence in the government’s data. “EJ Antoni is really the
opposite of that,” Veuger
lamented. “Even the people who may be somewhat sympathetic to his economic
policy views don’t think he’s qualified.”
Yet again, the United States is lurching toward dynamics
previously seen only in authoritarian regimes and dictatorships. Autocrats and
wannabe despots consistently cook the books, manipulating statistics to make
their nation’s economy appear better than it is. This comes at a cost: Once the
statistical facade peels away, providing a glimpse of the crumbling structure
below, investors stop believing the data. Eventually they flee, taking their
money with them.
The economist Luis Martinez has used satellite images to
test whether dictators were overstating
their country’s growth rate. (Because real, sustained GDP growth inevitably
produces increased light pollution in developing countries as cities expand and
economic activity increases, nighttime images from space have proved to be a
good proxy for economic growth.) Martinez’s data showed that the answer was
yes—and by a lot. The leaders he studied were overstating GDP numbers by up to
35 percent. And they weren’t just fudging the numbers; they were almost
certainly making them up.
Similarly, after Rwanda—which has long promoted itself as
an African success story under the economic management of its dictator, Paul
Kagame—boasted that it had reduced poverty by 6 percent over a five-year
period, independent researchers
concluded that poverty had actually increased by 5 to 7 percent. Other
studies have confirmed that authoritarians frequently manipulate statistics
strategically, ensuring that bad news never coincides with election cycles.
A dictator’s ability to snap their fingers and transform
economic malaise into a perceived miracle is an exercise of unconstrained
personal power. But it is also a sign of weakness—one that inflicts significant
damage to a country’s economy. That’s because economic investments involve
putting capital at calculated risk, and those risks become unattractive when
the underlying calculations are not based on trustworthy information. By
contrast, leaders in functioning democracies tie themselves to the economic masts
of independent institutions that are designed to speak truth to power—and
investors trust them accordingly with their money.
Effective decision making is impossible without reliable,
accurate information. And many crucial decisions in economic governance and
investment rely on the BLS jobs numbers. The monthly reports sway Federal
Reserve decisions, affect pension-payout calculations, and are factored into
virtually every determination involving major global investment. Economists
have expressed
their worries that if the jobs data are even perceived as being
subject to political pressure, international lending to the United States will
decline. When Fox News highlighted this week that Antoni had previously
expressed his desire to get rid of the monthly jobs reports, the value of the dollar
fell shortly thereafter.
Antoni might not be able to manipulate the statistics
themselves. Many economists are involved in compiling the data, and cooking the
books without drawing notice would be difficult. But in the current American
information environment, Antoni could do enormous damage simply by giving
misleading political ammunition to the MAGA movement, dressed up in the
official guise of a previously nonpartisan office. Antoni presumably has few
qualms about the political pressure he’s inevitably going to face from Trump; after
all, he has accepted a nomination for a job that now clearly comes with a risk
of being fired if the official statistics aren’t to the president’s liking. And
that means the clock is ticking for Antoni even if he is confirmed, because
Potemkin villages all eventually crumble.
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