The Commerce Department has reported that the second quarter’s gross domestic product has declined by 0.2% when being adjusted for inflation. Prior to this, the first-quarter also experienced a decline of 0.4%.
Most individuals would identify a “recession” as something that indicates a slowing of growth, businesses being forced to pull back and families struggling to make ends meet as a result of skyrocketing prices.
And for the past 18 months everyone can clearly see that this is the fault of Joe Biden.
Many economists have claimed that the risk continues to increase, even though the state of the economy currently fulfills the definition of a recession.
A senior economist for Wells Fargo stated, “We’re absolutely losing momentum, Income gains at minimum have struggled to keep pace with inflation, and that’s what is chipping away at people’s ability to spend.”
With that being said, Biden continues to assert that we are not experiencing a recession.
White House Press Secretary Karine Jean-Pierre spent the week responding to inquiries regarding the topic of recession, consistently reporting that a recession is “not the definition” of two consecutive quarter decline.
“No, we’re not redefining recession,” Jean-Pierre responded to Fox News White House correspondent Peter Doocy’s question: “If things are going so great though then why is it the White House officials are trying to redefine recession?”
She declined to further describe what the administration defines as a recession, only noting that they rely on “indicators” from the National Bureau of Economic Research (NBER).
Recently, President Biden was asked about his most recent economic woe: How worried should Americans be that the country might be in a recession?
“We’re not going to be in a recession,” he responded.
Biden is dead set on continuing to convince Americans that the economic recovery is far more robust than many think.
Ironically, right after the release of the GDP figure, Biden issued a statement that the nation is “on the right path and will come through this transition stronger and more secure”.
“Let me point out that GDP growth and price stability are two of the three goals of economic policy. The third is full employment,” he said, adding to an earlier statement that denied recession.
For the first time in 40 years, the economy is not growing and inflation climbs into the double digits. Even during the negative economic growth during the recessions in 1991, 2001, 2008, and 2020 the inflation rate sat between 2-3% or less.
Stagflation defines a situation where there is high inflation and no economic growth. Something that we are currently experiencing, as economic analysts pointed out.
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