The Biden administration is continuing its effort to spin bad economic news. Biden’s statement on today’s negative GDP report avoided any reference to recession, or even to the fact that the GDP number was negative.
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. But even as we face historic global challenges, we are on the right path and we will come through this transition stronger and more secure.
What transition? The transition from economic growth to economic decline?
My economic plan is focused on bringing inflation down, without giving up all the economic gains we have made. Congress has an historic chance to do that by passing the CHIPS and Science Act and Inflation Reduction Act without delay.
Biden’s administration has done absolutely nothing to bring down the cost of living, and the legislation he mentions, including the absurdly-named “Inflation Reduction Act,” will only increase the inflation that has devastated American families.
I think the administration’s gyrations over the definition of recession only make it look foolish. The Republican Party has put out this simple chart, which also appeared (without the editorializing) in today’s Wall Street Journal:
To be fair, though, the concept of a full-employment recession is novel if not unprecedented. The labor shortage continues, and wages have been rising. The problem is that the increasing cost of living has much more than wiped out wage gains for most people.
We will see how the economic slowdown continues over the coming months, but my guess is that inflation will continue to be most voters’ number one concern. Somewhat ironically, if the Democrats’ current legislative efforts succeed, they will only cement that party’s responsibility for the inflation that has devastated so many lives. Liberals seem to think they can accomplish almost anything by redefining words, but in November the definition of a recession is going to be the last thing on the minds of voters who can’t afford to heat their homes, fill up their cars, or pay for groceries.