#United States #Washington, D.C. #Gene Ludwig #LISEP #economic statistics

An Insight into 'The Mismeasurement of America'

The former Comptroller of the Currency, Gene Ludwig, is making waves with his upcoming book, The Mismeasurement of America, which sheds light on a critical issue: the inaccuracies in government economic statistics. As the chairman of the Ludwig Institute for Shared Economic Prosperity (LISEP), Ludwig challenges the prevalent metrics that shape public understanding of the economy. He argues that these headline figures often mask the real struggles faced by many Americans today.

In his book, Ludwig observes that while headlines may indicate economic growth, the reality for most citizens is quite the opposite. He states, "Despite headlines heralding growth and prosperity, most Americans have fallen behind. They're working harder year-upon-year not to get ahead but to merely survive." Ludwig paints a disheartening picture where the American dream feels increasingly out of reach for the middle and lower-income populations.

One of the central themes of The Mismeasurement of America is how antiquated definitions of economic indicators distort our perceptions of employment, wages, and inflation. For instance, the method of calculating unemployment counts someone as employed even if they only work a few hours a fortnight. This distorted metric fails to capture the reality of many who are underemployed and struggling to make ends meet. Furthermore, the measurement of inflation relies on a standard of over 80,000 varying items, which dilutes focus on the essential costs that impact low- and middle-income households the most, such as housing, food, and healthcare.

Ludwig emphasizes the importance of data presentation, saying, "The real issue is how these data are presented. At LISEP, we advocate for responsive and realistic metrics that truly reflect economic performance." He warns that relying on outdated and incomplete data can lead to poorly informed economic policies, which could ultimately harm the very population they intend to help.

In addressing these challenges, Ludwig introduces new, sophisticated methods to interpret the American economy’s performance more effectively. He asserts that sound economic policy requires timely and comprehensive data, warning that inaccuracies in this realm could have severe repercussions. Stating, "Unlike an errant weather forecast that might lead to a wardrobe mismatch, misleading economic data can mean the difference between prosperity and recession," Ludwig underscores the stakes involved in economic governance.

The Mismeasurement of America is now available for pre-order from various booksellers and will be released on September 30, 2025. In addition to his work on this book, Ludwig has authored another significant piece, The Vanishing American Dream, which further explores the challenges facing economic minorities in the U.S.

About Gene Ludwig and LISEP

Gene Ludwig is not only the chair of LISEP but also the founder of Promontory and Canapi LLC, a financial technology venture fund. His rich background includes serving as the vice chairman and senior control officer at Bankers Trust New York Corp., and he was previously the U.S. Comptroller of the Currency from 1993 to 1998. The Ludwig Institute, established in 2019 by Ludwig and his wife, Dr. Carol Ludwig, aims to enhance the economic well-being of middle and lower-income Americans through in-depth research and educational initiatives. They focus on unveiling new indicators for assessing unemployment and earnings, striving to provide a more transparent overview of how economic performance impacts various demographic groups. Follow LISEP on X @LISEP_org and stay connected with Gene Ludwig @geneludwig for more updates on his work and insights into economic policy.