By more than one technical definition, the United States has officially entered a recession, following two consecutive quarters of contracted economic growth.
Even worse, the economy shrunk by 0.9 percent, defeating critics’ already low expectations of shrinking by 0.5 percent.
Then again, who could really be surprised, given the fiasco of economic policies that have characterized the White House since Biden took over?
EJ Antoni, a research analyst at The Daily Wire, notes that the White House has done just about everything possible to steer the nation directly towards this outcome.
“Over the last 18 months, Congress, President Biden, and the Federal Reserve set our nation up for disaster,” Antoni drawled, “the consequence is that we are now in a recession.”
The Bureau of Economic Analysis (BEA) shed insight into the realities of the recession for most Americans, including a substantial cutback in spending across the board.
“The decrease in real GDP reflected decreases in private inventory investment, residential fixed investment, federal government spending, state and local government spending, and nonresidential fixed investment that were partly offset by increases in exports and personal consumption expenditures (PCE),” the BEA observed.
An increased trade deficit has also contributed to the country’s contracted growth.
“Imports, which are a subtraction in the calculation of GDP, increased,” the BEA added.
Of course, don’t count on any Biden officials to give the remotely real story.
Treasury Secretary Janet Yellen, who previously owned up to speaking incorrectly about inflation, appears likely to own up to speaking incorrectly once again in the future.
As just before the data’s release, Yellen declared the economy was not in a recession.
Instead, she alleged that the American economy was merely “in a period of transition.”
“This is not an economy that’s in recession,” Yellen argued, “but we’re in a period of transition in which growth is slowing and that’s necessary and appropriate and we need to be growing at a steady and sustainable pace. “
Of course, that “steady and sustainable pace” means hammering businesses … not long at all after the government hammered businesses via COVID restrictions.
“So there is a slowdown and businesses can see that and that’s appropriate, given that people now have jobs and we have a strong labor market,” Yellen brayed.
Well, that labor market probably won’t say strong very long given all the other macroeconomic indicators emerging now.
“Economic advisor” Brian Deese offered even worse guidance, going as far as to quibble over the definition of recession rather than deal with the issue head on.
“It’s not the definition that economists have traditionally relied on,” Deese sneered in reference to the technical definition of recession.
Uh, news flash, Deese: Americans don’t really care about debating nuance or technicalities when gas is over $5 per gallon.
Arguing over definitions is critically important in woke graduate school classes in the humanities.
Not so much real life.
Besides, Deese clearly needs to remember his days of graduate school, which appear not long ago at all given his youthful, albeit clueless, appearance.
As back in 2008, Deese defined a recession as exactly the economic situation that’s occurring now.
“Economists have a technical definition of recession, which is two consecutive quarters of negative growth,” Deese boomed.
Well, “technically” that definition appears to change when Biden is in charge.
Speaking of Biden, the president appears clueless about a recession as well, parroting Yellen and blabbing about the jobs market.
While ignoring the fact jobless claims are ticking upwards.
“That doesn’t sound like a recession to me,” Biden boomed, “both Chairman Powell and many of the significant banking personnel and economists say we’re not in a recession.”
Oh well, if they say we’re not in a recession, we’re not in a recession.
By chance the same types saying inflation was “transitory?”
Calvin Moore, the communications director for the Congressional Leadership Fund, notes that Democrats remain perpetually out of touch because they refuse to assume accountability for their stunning behavior.
“Democrats can’t solve the massive economic challenges our nation is facing because they won’t even admit there’s a problem to begin with.,” Moore remarked, “families need relief, but Democrats’ only solution is doubling down on the same failed policies that got us here in the first place.”
Antoni also weighed in on highly irresponsible behavior at the level of the Federal Reserve, which now has the unenviable task of keeping the economy from careening completely out of control.
“The current economic situation is the consequence of profligate federal spending financed by printed money. Now, instead of acknowledging responsibility for their failed policies, the Biden administration chooses to play word games, just like they did with inflation,” Antoni remarked wryly before continuing on to criticize the “verbal gymnastics” of the administration.
“The latest of their verbal gymnastics is an attempt to redefine a ‘recession’ and deny the reality of the current moment,” Antoni chortled, “it adds insult to injury for hundreds of American families when the Biden administration engages in this Orwellian doublespeak.”
No kidding. Triplespeak in some places.
One can only imagine how long it will take the White House to admit reality on this one …
Author: Jane Jones