Economic policies often have winners and losers. Understanding who benefits and who pays costs is crucial for effective policy intervention. Economists remind us that “there’s no such thing as a free lunch” – changes to economic policy can help some people while hurting others.
Consider the impact of President Donald Trump’s frequent requests to lower the Federal Funds rate, which would benefit firms expanding new products or opening markets. However, it would harm savers and less-accessible firms. Similarly, the recent U.S.-EU tariff deal has winners like defense contractors but losers like households purchasing imported goods.
The Big Beautiful Bill, a tax reduction bill, lowers rates for some households while increasing future debt burdens and removing Medicaid benefits from users. Concentrated benefits often come with diffuse costs – trade negotiations can increase profits at American defense manufacturers but lead to higher prices on imported goods.
Economic policies affect the economy in complex ways. Economists measure policy impacts using data from government agencies, universities, and other organizations. However, a recent firing of the Bureau of Labor Statistics commissioner raises concerns about the accuracy and impartiality of economic data.
The administration’s actions may mask the true impact of their policies, but the public loses due to decreased trust in government institutions and ability to make informed decisions. The executive branch should prioritize strengthening credibility rather than hiding policy impacts.
The cost-benefit calculation is clear: losing credibility hurts American households by reducing understanding of economic changes, while gaining benefits from manipulating data ultimately harms the administration’s own policies.
Source: https://www.deseret.com/opinion/2025/08/06/analysis-american-households-and-businesses-lose-when-economic-data-becomes-political