Friday 30 August 2019

Australian Bureau of Statistics more interested in telling a good story in mainstream & social media rather than presenting the real facts to readers


The Guardian, 28 August 2019: 

References to wealth inequality reaching its peak in 2017-18 were removed from an Australian Bureau of Statistics press release to help craft a “good media story”, according to internal documents. 

The emails and drafts show the ABS issued a separate income inequality media release in July to create a narrative of “stable” inequality despite wealth inequality on the rise, with one email noting the ABS did not want to “draw attention” to a bad result for the poorest households. 

A spokesman for the ABS has denied any interference by the Morrison government or the suggestion it sought to misrepresent data, which was all strictly factual, arguing media releases “aim to showcase key findings” with journalists free to draw their own conclusions from other data. 

On 12 July the ABS published two media releases titled “Inequality stable since 2013–14” and “Average household wealth tops $1 million” which copped criticism for failing to explain that the richest 20% of households have got substantially richer over time. 

In the first release the ABS acknowledged that “there was a marginal increase in wealth inequality in 2017–18 and that wealth continues to be less equally distributed between households than income amongst Australians”. 

An earlier draft, produced under freedom of information, states that wealth inequality as measured by the Gini coefficient, “is at its peak now (0.621) since it was first comprehensively measured in 2003-04 (0.573)”, a phrase later deleted after a direction to “focus on income over wealth”. 

Another draft states that although the increase in wealth inequality over the previous two years was “not statistically significant … it is a significant increase compared to 2011–12 (0.593) and 2003–04 (0.573)”.

An email on 26 June notes that the lowest quintile has seen “a significant change” from 2015-16 to 2017-18, down from 0.8% of all household wealth to 0.7%, or an average of $37,900 per household down to $35,200. Its unidentified author notes: “I’m not sure that we want to draw attention to this though.” 

The phrase “the lowest 20% controlled less than 1 per cent of all household wealth, with average wealth currently at $35,200” was retained in the final release, without noting the deterioration. 

The final release also notes “the wealthiest 20% of households still held over 60% of all household wealth, now averaging $3.2 million per household” without noting the growth over time from $1.9 million in 2003-4. 

In an email on 7 July, the ABS director of household economic resource surveys notes a person whose name is redacted had suggested two media releases be issued: one for wealth and a second for income data “where we can present more of a story that inequality is stable”. 

“She is also requesting that it is this story (inequality stable) that gets tweeted first on the day of release,” it said. 

Another undated email suggests the ABS is “still able to craft a good media story despite more recent data showing a changing picture”..... [my yellow highlighting]

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