Despite the Biden administrations best attempts to obfuscate the meaning of the word recession, the United States has posted their second consecutive quarter of negative growth – which many economists cite as the traditional definition of a recession.
According to the report released today by the Bureau of Economic Analysis (BEA), the country’s gross domestic product (GDP) has decreased for the second consecutive quarter at a rate of 0.9 percent. This means that the economy underperformed what many economists thought it would after they estimated it would grow by 0.4 percent in the second quarter. In the first quarter of the year the GDP had fallen by 1.6 percent.
Biden said that he does not think that US will enter a recession just days ago.
The Biden administration has been attempting to change the definition and perception of a recession from the the traditional measurement of two quarters of negative GDP growth.
On top of this as the economy is starting to contract, prices are surging across the nation due to the highest inflation since 1981. The Consumer Price Index currently shows inflation at 9.1 percent forcing many companies to raise their consumer goods prices up to 11.3 percent in June.
To try and tame the runaway inflation, the Federal Reserve has increased interest rates by 0.75 percent on Wednesday. However, such a move is likely to increase the country’s slide into a recession.
“Policymakers will no doubt be tying themselves in knots trying to explain why the U.S. economy is not in recession,” said Seema Shah, chief global strategist at Principal Global Investors, to Fox Business. “However, they make a strong point. While two consecutive quarters of negative growth is technically a recession, other timelier economic data are not consistent with recession.”
The Biden administration has attempted to hide the recession by touting that the National Bureau of Economic Research, which generally tracks recessions. The same organization labeled the economy in a recession almost 12-months after the recession began in 2008 under former President Barrack Obama.
The NBER said that it uses more determinations other than GDP to see if the economy is in a recession. Consumer spending has stayed high, which has caused some to wonder if we are actually in one.
“Thus, real GDP could decline by relatively small amounts in two consecutive quarters without warranting the determination that a peak had occurred,” the nonprofit said on its website.
Either way, the decline in the GDP is a political disaster for President Biden who has mostly been blamed for inflation and contracting economy coming into winter midterms.
Fed Chairman Jerome Powell, however, believes that the country is not in a recession.
“I do not think the U.S. is currently in a recession, and the reason is there are too many areas of the economy that are performing too well,” Powell said. “This is a very strong labor market. … It doesn’t make sense that the economy would be in a recession with this kind of thing happening.”
It’s official. The Biden administration is in deep doo doo. They are now facing a recessionary economy caused by their insane spending plans and their goal of ending our reliance on fossil fuels. Going green is all fine and dandy, but not if you are doing it at the expense of ruining your economy and making people poor in the process. Let’s take a yes or no poll. Do you think that the US is in a recession? Let us know your thoughts.