In its latest attempt to deny the cruel economy they’ve created, the Biden Administration is now redefining recession and downplaying the red flags in the economy.
- A recession has officially been declared after two quarters of negative economic growth in ten out of the previous ten recessions in the United States, as AEI Director of Economic Policy Studies Michael Strain points out.
- News outlets in 2019 made clear that the measure of a recession was two consecutive quarters of negative economic growth. Watch:
- The Atlanta Federal Reserve predicts second quarter GDP will run negative, with the economy shrinking 2.1 percent when the data is released Thursday morning.
- The Wall Street Journal reports that “The drop in U.S. services activity was particularly sharp, with the biggest fall in output since May 2020—a worrying sign for consumer spending, the engine for U.S. growth.”
Instead of offering Americans solutions to 40-year inflation that’s crushing American families and small businesses, President Biden’s solution is to deny responsibility and say it isn’t happening.
Ways and Means Republican Leader Rep. Kevin Brady (R-TX) has warned the question economists and the Biden Administration should be asking isn’t whether or not there will be a recession, but, “The question is how long and how harsh will that recession be,” as reported in the Washington Examiner.
The American people already feel like they’re in a recession.
- Under President Biden, workers’ wages have dropped nearly four percent.
- For a majority of low-income households, rising prices have become a source of “major financial stress” as a new report confirms that inflation has wiped out 26 million low-income households’ savings since President Biden took office.
- For six months in a row, Main Street businesses have faced double-digit inflation and have lost jobs three out of the last four months.
Red flags in President Biden’s economy point to a recession ahead.
- Small businesses lost jobs three out of the last four months and over half of business owners are still struggling to fill job openings after President Biden discouraged work.
- President Biden’s policies have made inflation worse, according to the San Francisco Federal Reserve and former Obama-Biden economic advisers. These findings were echoed in a report from the nonpartisan Congressional Budget Office (CBO).