Although forecasters expect the GDP to be close to three percent, any positive growth in this report is a “phantom,” as more than 20 forecasters project negative growth in the next three out of four quarters.
This comes as the majority of Americans brace for a cruel Biden recession, with more than half of all business owners considering layoffs in the next six months.
Bottom Line: Any attempts to hail positive economic growth in Thursday’s report as the end of the recession is wishful thinking. President Biden has crashed the economy and he is attempting to pass the blame onto Republicans.
Positive Economic Growth in GDP Needs Greater Context.
- Although forecasters anticipate the GDP will reach three percent, this will largely come from a surge in exports and deficit-fueled government spending, not consumer spending or business investment.
- Even with a “ghost” three percent growth in the third quarter, the economy as a whole so far in 2022 would be growing by only a hair more than zero percent.
- More than 20 forecasters project the economy will shrink this year, with 11 projecting the economy will shrink this year and next.
Main Street is Bracing for a Recession.
- According to a new Bloomberg Economics model, a Biden recession “effectively certain,” and will happen much sooner than anticipated.
- Similarly, a Wall Street Journal survey of economists put the probability of a recession in the next year at 63 percent, which is up 14 percent from July.
- The majority of chief executive officers (CEO) surveyed by CNBC believe there will be a recession in the next year. Only a third believe it will be a “short” or “mild” recession, while 51 percent are considering layoffs in the next six months.
- More than a third of chief financial officers (CFO) believe the U.S. is either already in a recession, or will be in one before the end of the year.
President Biden Shrunk the Economy.
- Democrats’ $2 trillion partisan so-called stimulus paid workers more to stay at home than go to work, causing a labor shortage that’s harming Main Street and raising prices.
- Democrats’ so-called Inflation Reduction Act will actually increase inflation, while raising taxes on Made-in-America manufacturers and working families.
Americans Are Suffering Under Biden’s Cruel Economy.
- At least 84 percent of Americans fear a recession will take place before the end of the year, prompting more than three in four families to make significant lifestyle changes.
- More than half of American workers’ paychecks have been slashed by nearly nine percent, the steepest pay cut in 25 years, according to analysis by the Dallas Fed.
- A majority of minority workers feel stressed about their finances, as only a third of Black workers feel financially well off – down from earlier this year – and only one in three Hispanic workers feel financially well off.