Friday, July 29, 2022

Defining Recessions Down: Biden’s Pollyanna Act Won’t End Well

2001

  • Jared Bernstein, who sits on President Joe Biden's Council of Economic Advisers, is trying to argue that, despite two consecutive quarters of a shrinking economy, we aren't in a recession right now.
  • Biden's Treasury Secretary Janet Yellen, meanwhile, insisted that "This is not an economy that's in recession. But we're in a period of transition."

Bottom Line

  • "It's no surprise that the economy is slowing down as the Federal Reserve acts to bring down inflation," Biden said in a statement. "We are on the right path and we will come through this transition stronger and more secure." The right path? Really?
  • Real wages are in decline thanks to nearly double-digit inflation.
  • Millions of people have dropped out of the labor force since Biden took office, making the unemployment rate look artificially low.

Why not pretend that we didn’t suffer a recession in 2020?

  • Biden spent years talking up the 2020 shock, calling it an economic "collapse," "the worst economic crisis since the Great Depression," one in desperate need of his $2 trillion "rescue plan."
  • Now that his “rescue” has turbocharged inflation and produced a recession, Biden wants everyone to think it's morning in America.
  • By doing so, Biden insults the millions who are truly suffering today, he further undermines public confidence, diminishes what little respect people still have for him and other political leaders, and makes it all the harder to right the economic ship. 

https://issuesinsights.com/2022/07/29/defining-recessions-down-bidens-attempt-to-defy-reality-wont-end-well/ 

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