President Biden said it’s “no surprise” that the economy is slowing down as the Bureau of Economic Analysis reported that GDP (gross domestic product) contracted 0.9% in the second quarter.
Following a 1.6% contraction in the first quarter, the latest numbers meet a widely accepted rule of thumb for the definition of a recession.
CNBC notes that the second quarter numbers were worse than the Dow Jones estimate for a gain of 0.3%.
GDP represents the broadest measure of goods and services produced across the economy – though as most people learn in Econ 101, GDP is often calculated with government spending counted as growth, rather than a parasitic drain on the productive economy.
“Coming off of last year’s historic economic growth – and regaining all the private sector jobs lost during the pandemic crisis – it’s no surprise that the economy is slowing down as the Federal Reserve acts to bring down inflation,” the President said in a statement.
President Biden: “it’s no surprise that the economy is slowing down” pic.twitter.com/9T3K7FPXKG
— Mary Margaret Olohan (@MaryMargOlohan) July 28, 2022
Biden Not Surprised as GDP Signals Recession
Two things regarding the above statement:
- One – Can’t help but notice the President referencing “regaining” jobs lost during the pandemic, something he often touts as “creating” jobs.
- Two – You know who might be surprised by the numbers meeting the technical definition of a recession? Somebody who predicted just days ago it wouldn’t.
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President Biden, when pressed by a reporter about how concerned the public should be about a recession, said he doesn’t think it is happening.
“We’re not going to be in a recession, in my view,” he predicted. “I don’t think we’re going to — God willing — I don’t think we’re going to see a recession.”
NOW – Biden: “We’re not going into a recession.” pic.twitter.com/KMCKN1gf7g
— Disclose.tv (@disclosetv) July 25, 2022
The White House made waves last week by publishing a blog post in which they suggested traditional definitions of a recession do not necessarily mean that this time around the economy will be on the same path.
“It is unlikely that the decline in GDP in the first quarter of this year—even if followed by another GDP decline in the second quarter — indicates a recession,” the post reads before explaining why they believe this to be the case.
“A second straight negative GDP reading meets a long-held basic view of recession,” CNBC writes to the contrary.
Even Newsweek, which fact-checked accusations from Republicans that the White House tried to redefine the term, stated, “it’s worth quickly noting the most widely accepted definition of a recession: a decline across two consecutive quarters in gross domestic product (GDP) and economic activity.”
Even CNN’s Chris Cillizza Is Mocking the White House For Recession Spin: ‘I Was Laughing to Myself’ https://t.co/3plc7gx7HY via @TPInsidr
— Rusty ????️ (@rustyweiss74) July 26, 2022
RELATED: Even CNN’s Chris Cillizza Is Mocking the White House For Recession Spin: ‘I Was Laughing to Myself’
Severe Recession
News of the economy meeting the technical definition of a recession comes less than two years after Joe Biden, on the election trail, told the American people he’d rescue them from a recession as he did once before.
I helped pull this country out of a recession before — and, as president, I’ll do it again.
— Joe Biden (@JoeBiden) October 11, 2020
Instead, the President inherited a recovery that should have boomed following business lockdowns during the pandemic, and here we are again.
Earlier this week, famed economist Nouriel Roubini predicted the U.S. economy is going to endure a “severe” recession.
“There are many reasons why we are going to have a severe recession and a severe debt and financial crisis,” Roubini said. “The idea that this is going to be short and shallow is totally delusional.”
Economist Nouriel Roubini on shallow recession calls: “There are many reasons why we are going to have a severe recession and a severe debt and financial crisis. The idea that this is going to be short and shallow is totally delusional” https://t.co/V8G14mlEhH pic.twitter.com/ngEXXQbZmz
— Bloomberg TV (@BloombergTV) July 25, 2022
Two-thirds of Americans disapprove of Biden’s handling of the economy. 70%, according to a poll by Magnify Money, have been predicting the recession, even as the administration has been whistling past the graveyard.
68% fear they are not prepared to handle any such financial downturn.
Prepared or not, it is here.
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