[Congressional Record Volume 152, Number 60 (Tuesday, May 16, 2006)]
[Senate]
[Pages S4622-S4624]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DODD:
  S. 2815. A bill to establish the Commission on Economic Indicators to 
conduct a study and submit a report containing recommendations 
concerning the appropriateness and accuracy of the methodology, 
calculations, and reporting used by the Government relating to certain 
economic indicators; to the Committee on Banking, Housing, and Urban 
Affairs.
  Mr. DODD. Mr. President, I introduce legislation today to improve the 
way we measure the condition of America's economy. My bill, the 
Economic Indicators Commission Act of 2006, would establish a 
nonpartisan commission of experts to make recommendations concerning 
the appropriateness and accuracy of the methodology, calculations, and 
reporting of the government's economic statistics. I am joined in this 
effort by Representative Emanuel in the other body.
  The statistics that describe our economy provide essential 
information and guidance for private market actors and public 
policymakers. Statistics like Gross Domestic Product, GDP, the 
inflation rate, and the unemployment rate help investors decide how to 
allocate their money, help entrepreneurs decide whether to start a new 
business, and help job-seekers decide where to look for new 
opportunities. Policymakers ranging from central bankers to elected 
officials rely on the same statistics to make informed decisions about 
monetary and fiscal policy and public sector investments.
  Yet while we rely on these indicators, we know that they paint an 
imperfect picture. The Bureau of Labor Statistics, BLS, for example, 
reports two separate measures of employment, which, as many of us may 
remember, created some controversy in 2003 and 2004 when they provided 
conflicting assessments of our economy's health. The BLS's two series 
never match up perfectly, but at one point, one measure showed a loss 
of 1 million jobs since the recession's official end in November 2001, 
while the other reported an increase of 1.4 million. The 2004 Economic 
Report of the President called such a large and sustained divergence 
``unprecedented.''
  Ben Bernanke, now Chairman of the Federal Reserve Board of Governors,

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described well the challenge of relying on imperfect indicators in a 
2004 speech to the National Economists Club in Washington, DC. In the 
speech, Dr. Bernanke made light of a common analogy used to describe 
American monetary policy, which compares the Federal Reserve's Federal 
Open Market Committee to the driver of a car--the U.S. economy--who 
must decide whether to tap the accelerator or the brake in order to 
maintain proper speed. Dr. Bernanke offered a slightly modified 
comparison: ``[I]f making monetary policy is like driving a car,'' he 
said, ``then the car is one that has an unreliable speedometer, a foggy 
windshield, and a tendency to respond unpredictably and with delay to 
the accelerator or the brake.''
  While our economic statistics will likely never provide perfect, 
real-time gauges of our economy's performance, that does not mean we 
should cease seeking to improve them. Chairman Bernanke's predecessor 
at the Federal Reserve, Alan Greenspan, was known for his search for 
insight not only by reading economic data, but also by knowing its 
limitations and pushing for better ways to measure what was happening 
in the national and global economies. As Chairman Greenspan recognized 
in a speech to the American Economic Association on January 3, 2004, 
``the economic world in which we function is best described by a 
structure whose parameters are continuously changing.''
  Chairman Greenspan makes an important point. As our economy evolves, 
so too should our methods for measuring it. In a recent Business Week 
cover story, reporter Michael Mandel outlines one example of how modem 
features of the 21st century economy may be challenging the accuracy of 
traditional economic indicators. America's economy, Mandel argues, has 
become increasingly ``knowledge-based,'' driven by intangible 
investments in addition to the production of tangible goods. 
Intangibles, however, are notoriously difficult to measure, so as a 
result, our traditional indicators may be leaving out a growing portion 
of the economic picture. If intangibles truly are growing in 
importance, our statistics must better account for them in order to 
provide a full and accurate measure of economic activity.
  Intangibles aren't the only economic factor that our current 
indicators may not capture accurately. Researchers in academic and 
public policy institutions have also questioned the way we measure 
poverty in America. They suggest that the government's use of 
``reported household income'' as the primary measurement tool does not 
properly account for regional differences in the cost of living or 
noncash items such as food stamps. As a result, we may be 
systematically undercounting the number of Americans living in poverty, 
especially those living in high-cost areas. Mr. President, if we as a 
Nation are going to effectively fight the scourge of poverty, we must 
know where to aim and have the ability to measure our progress.
  Properly accounting for intangibles and developing more realistic 
standards of poverty represent only two of the many challenges we face 
in improving the way we measure our economy. Public servants at each of 
our government statistical agencies, along with independent 
researchers, are working continuously and diligently to better the 
techniques for collecting and reporting information. But the challenge 
is to bring these efforts together in a larger, coordinated context, 
with the mission to fundamentally re-examine the way we measure 
economic activity and our progress as a society.
  The legislation I introduce today, the Economic Indicators Commission 
Act of 2006, will achieve this goal. It establishes a nonpartisan panel 
of eight experts appointed by Senate and House leadership, in 
consultation with the chairman and ranking members of the Banking and 
Finance Committees in the Senate, the Financial Services and Ways and 
Means Committees in the House, and the Joint Economic Committee. The 
bill directs the Commission to consult with both users and reporters of 
data, such as the Federal Reserve and Council of Economic Advisers and 
the Commerce and Labor Departments, and report its findings and 
recommendations to the Congress within 12 months.
  In order to formulate effective policy and improve market efficiency, 
we need a full and accurate picture of the economy. Our economic data 
has the power to literally move markets; it influences billions of 
dollars worth of investment and public policy decisions. The 
legislation I introduce today will help Americans make more informed 
decisions by improving these statistics. Going back to Chairman 
Benanke's joke about the analogy of the economy as a difficult-to-drive 
car, this bill will help drivers de-fog the windshield and upgrade the 
speedometer, for the benefit of all.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2815

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Commission on Economic 
     Indicators Act of 2006''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) the Federal and State governments and private sector 
     entities depend on the economic statistics published by the 
     Federal Government;
       (2) questions have been raised about the accuracy of 
     various measures including productivity, poverty, inflation, 
     employment and unemployment, and wages and income; and
       (3) it is essential that these indicators accurately 
     reflect underlying economic activity and conditions.

     SEC. 3. ESTABLISHMENT OF COMMISSION.

       (a) Establishment.--There is established the Commission on 
     Economic Indicators (in this Act referred to as the 
     ``Commission'').
       (b) Membership.--
       (1) Composition.--The Commission shall be composed of 8 
     members of whom--
       (A) 2 shall be appointed by the Majority Leader of the 
     Senate, in consultation with the Chairmen and Ranking Members 
     of the Committee on Banking, Housing, and Urban Affairs of 
     the Senate, the Committee on Finance of the Senate, and the 
     Joint Economic Committee;
       (B) 2 shall be appointed by the Minority Leader of the 
     Senate, in consultation with the Chairmen and Ranking Members 
     of the Committee on Banking, Housing, and Urban Affairs of 
     the Senate, the Committee on Finance of the Senate, and the 
     Joint Economic Committee;
       (C) 2 shall be appointed by the Speaker of the House of 
     Representatives, in consultation with the Chairmen and 
     Ranking Members of the Committee on Financial Services of the 
     House of Representatives, the Committee on Ways and Means of 
     the House of Representatives, and the Joint Economic 
     Committee; and
       (D) 2 shall be appointed by the Minority Leader of the 
     House of Representatives, in consultation with the Chairmen 
     and Ranking Members of the Committee on Financial Services of 
     the House of Representatives, the Committee on Ways and Means 
     of the House of Representatives, and the Joint Economic 
     Committee.
       (2) Qualifications.--Members of the Commission shall be--
       (A) appointed on a nonpartisan basis; and
       (B) experts in the fields of economics, statistics, or 
     other related professions.
       (3) Date.--The appointments of the members of the 
     Commission shall be made not later than 60 days after the 
     date of enactment of this Act.
       (c) Period of Appointment; Vacancies.--Members shall be 
     appointed for the life of the Commission. Any vacancy in the 
     Commission shall not affect its powers, but shall be filled 
     in the same manner: as the original appointment.
       (d) Initial Meeting.--Not later than 30 days after the date 
     on which all members of the Commission have been appointed, 
     the Commission shall hold its first meeting.
       (e) Meetings.--The Commission shall meet at the call of the 
     Chairman.
       (f) Quorum.--A majority of the members of the Commission 
     shall constitute a quorum, but a lesser number of members may 
     hold hearings.
       (g) Chairman and Vice Chairman.--The Commission shall 
     select a Chairman and Vice Chairman from among its members.

     SEC. 4. DUTIES OF THE COMMISSION.

       (a) Study.--The Commission shall conduct a study of--
       (1) economic statistics collected and reported by United 
     States Government agencies, including national income, 
     employment and unemployment, wages, personal income, wealth, 
     savings, debt, productivity, inflation, and international 
     trade and capital flows; and
       (2) ways to improve the related statistical. measurements 
     so that such measurements provide a more accurate and 
     complete depiction of economic conditions.
       (b) Consultation.--In conducting the study under this 
     section, the Commission shall consult with--
       (1) the Chairman of the Federal Reserve Board of Governors;
       (2) the Secretary of Commerce;
       (3) the Secretary of Labor;
       (4) the Secretary of the Treasury;

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       (5) the Chairman of the Council of Economic Advisers; and
       (6) the Comptroller General of the United States.
       (c) Report.--Not later than 1 year after the date of the 
     first meeting of the Commission, the Commission shall submit 
     a report to Congress which shall contain a detailed statement 
     of the findings and conclusions of the Commission, together 
     with recommendations for such legislation and administrative 
     actions as the Commission considers appropriate, including a 
     recommendation of the appropriateness of establishing a 
     similar commission after the termination of the Commission.

     SEC. 5. POWERS OF THE COMMISSION.

       (a) Hearings.--The Commission may hold such hearings, sit 
     and act at such times and places, take such testimony, and 
     receive such evidence as the Commission considers advisable 
     to carry out this Act.
       (b) Information From Federal Agencies.--The Commission may 
     secure directly from any Federal department or agency such 
     information as the Commission considers necessary to carry 
     out this Act. Upon request of the Chairman of the Commission, 
     the head of such department or agency shall furnish such 
     information to the Commission. The Commission shall maintain 
     the same level of confidentiality for such information made 
     available under this subsection as is required of the head of 
     the department or agency from which the information was 
     obtained.
       (c) Postal Services.--The Commission may use the United 
     States mails in the same manner and under the same conditions 
     as other departments and agencies of the Federal Government.

     SEC. 6. COMMISSION PERSONNEL MATTERS.

       (a) Compensation of Members.--Each member of the Commission 
     who is not an officer or employee of the Federal Government 
     shall be compensated at a rate equal to the daily 
     equivalent of the annual rate of basic pay prescribed for 
     level IV of the Executive Schedule under section 5315 of 
     title 5, United States Code, for each day (including 
     travel time) during which such member is engaged in the 
     performance of the duties of the Commission. All members 
     of the Commission who are officers or employees of the 
     United States shall serve without compensation in addition 
     to that received for their services as officers or 
     employees of the United States.
       (b) Travel Expenses.--The members of the Commission shall 
     be allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from their homes or regular places of 
     business in the performance of services for the Commission.
       (c) Staff.--
       (1) In general.--The Chairman of the Commission may, 
     without regard to the civil service laws and regulations, 
     appoint and terminate an executive director and such other 
     additional personnel as may be necessary to enable the 
     Commission to perform its duties. The employment of an 
     executive director shall be subject to confirmation by the 
     Commission.
       (2) Compensation.--The Chairman of the Commission may fix 
     the compensation of the executive director and other 
     personnel without regard to chapter 51 and subchapter III of 
     chapter 53 of title 5, United States Code, relating to 
     classification of positions and General Schedule pay rates, 
     except that the rate of pay for the executive director and 
     other personnel may not exceed the rate payable for level V 
     of the Executive Schedule under section 5316 of such title.
       (3) Personnel as federal employees.--
       (A) In general.--The executive director and any personnel 
     of the Commission who are employees shall be employees under 
     section 2105 of title 5, United States Code, for purposes of 
     chapters 63, 81, 83, 84, 85, 87, 89, 89A, 89B, and 90 of that 
     title.
       (B) Members of board.--Subparagraph (A) shall not be 
     construed to apply to members of the Commission.
       (d) Detail of Government Employees.--Any Federal Government 
     employee may be detailed to the Commission without 
     reimbursement, and such detail shall be without interruption 
     or loss of civil service status or privilege.
       (e) Procurement of Temporary and Intermittent Services.--
     The Chairman of the Commission may procure temporary and 
     intermittent services under section 3109(b) of title 5, 
     United States Code, at rates for individuals which do not 
     exceed the daily equivalent of the annual rate of basic pay 
     prescribed for level V of the Executive Schedule under 
     section 5316 of such title.

     SEC. 7. TERMINATION OF THE COMMISSION.

       The Commission shall terminate 90 days after the date on 
     which the Commission submits its report under section 4.

     SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as 
     necessary to carry out this Act.
                                 ______