It’s here, and right in time for the midterms. And don’t be fooled by polls. The Democrats will use pet pollsters to fuel their comeback narrative. But it can’t be hidden. We’re in a recession.
Fox: “President Biden said the United States “is not in a recession,” despite Thursday’s GDP report, saying it is “no surprise that the economy is slowing down” amid inflation.
The U.S. economy shrank in the spring for the second consecutive quarter, meeting the criteria for a recession as record-high inflation and higher interest rates forced consumers and businesses to pull back on spending.
Gross domestic product, the broadest measure of goods and services produced across the economy, shrank by 0.9% on an annualized basis in the three-month period from April through June, the Commerce Department said in its first reading of the data on Thursday. Refinitiv economists expected the report to show the economy had expanded by 0.5%.”
A lot of people are wondering about the definition of recession. A recession is defined as two consecutive quarters of negative GDP growth if a Republican is president. The definition is far more complicated and unknowable if a Democrat is president.
— David Sacks (@DavidSacks) July 28, 2022
“Coming off of last year’s historic economic growth — and regaining all the private sector jobs lost during the pandemic crisis — it’s no surprise that the economy is slowing down as the Federal Reserve acts to bring down inflation,” Biden said Thursday. “But even as we face historic global challenges, we are on the right path and we will come through this transition stronger and more secure.” Translation: We’re in a recession.
Biden says the job market “remains historically strong, with unemployment at 3.6% and more than 1 million jobs created in the second quarter alone. Consumer spending is continuing to grow,” he said. Translation: Wow, this is a clumsy pivot.
Biden said a Korean firm was “just one of the companies investing more than $200 billion in American manufacturing since I took office, powering a historic recovery in American manufacturing.” Translation: Focus on Korea, not here.
“My economic plan is focused on bringing inflation down, without giving up all the economic gains we have made,” he said. “Congress has an historic chance to do that by passing the CHIPS and Science Act and Inflation Reduction Act without delay.” Translation: And I want to make it worse.
Biden’s comments came just days after he said the U.S. was “not coming into recession. We’re not coming into recession, in my view,” Biden said Monday. “I don’t think we’re going to — God willing — I don’t think we’re going to see a recession.” Well, we are now.
The White House pathetically tried to spin. “What is a recession? While some maintain that two consecutive quarters of falling real GDP constitute a recession, that is neither the official definition nor the way economists evaluate the state of the business cycle,” a WH blog post insisted.
But people feel differently. “I think we’re in a recession,” Lawrence, a 70-year Alexandria, VA resident, told press. “Interest rates have gone up, the economy seems to be slowing down, the price of cars is unreal.”
Lauren, also from Alexandria, said: “Absolutely, we’re in a recession. Have you checked gas prices lately? Have you checked the interest rates?”
“At this point, I think is going to get worse because prices are going up, and employment pay is not going up as fast as prices is,” a woman named Parris told media. “So it’s going to be a lot more people being hurt by what’s happening.”
Senator Jon Cornyn agreed. “I think we know what the problems are right now,” Cornyn said. “We know that inflation is undermining the standard of living of Americans across the country, including the people on fixed incomes and at the lower-end of the income scale.”