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Census Bureau Director’s Blog on “A Future Without Key Social and Economic Statistics for the Country”

by Louis Bach, Communications

Last week we reacted to the House of Representatives’ vote to eliminate the American Community Survey, the Census Bureau’s means for gathering important socioeconomic data. On Friday, the Census Bureau itself weighed in, describing the impact of the legislation.

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Excerpt:

The Appropriations Bill eliminates the Economic Census, which measures the health of our economy. It terminates the American Community Survey, which produces the social and demographic information that monitors the impact of economic trends on communities throughout the country. It halts crucial development of ways to save money on the next decennial census. In the last three years the Census Bureau has reacted to budget and technological challenges by mounting aggressive operational efficiency programs to make these key statistical cornerstones of the country more cost efficient. Eliminating them halts all the progress to build 21st century statistical tools through those innovations. This bill thus devastates the nation’s statistical information about the status of the economy and the larger society…

The ACS is our country’s only source of small area estimates on social and demographic characteristics. Manufacturers and service sector firms use ACS to identify the income, education, and occupational skills of local labor markets they serve. Retail businesses use ACS to understand the characteristics of the neighborhoods in which they locate their stores. Homebuilders and realtors understand the housing characteristics and the markets in their communities. Local communities use ACS to choose locations for new schools, hospitals, and fire stations. There is no substitute from the private sector for ACS small area estimates. Even if the funding problems were solved in the proposed budget, the House bill also bans enforcement of the mandatory nature of participation in the ACS; this alone would require at least $64 million more in funding to achieve the same precision of ACS estimates.

For more, including the costs of eliminating the Economic Census and reducing the efficiency of the Census Bureau, see the Census Bureau Director’s Blog.