More specifically, could a recession be avoided if our government fed much rosier information? Better job numbers>higher market>more consumer confidence>more spendin... (far be it from me to suggest that our government would EVER be less than honest with us ;^) I do understand that any gains could be short-lived and that any up side to such a scheme would have a HUGE down side if people lost faith in the integrity of the government. Just curious of how influential that data can be.

Probably.

They've already been publishing bogus numbers for a while now, that's what's been keeping things going for this long.

It is very influential, but the numbers them self have to take in some assumptions, that is why they are always revised a few months later.