Monday, July 25, 2022

WH Redefines 'Recession' Days Before Expected GDP Report Showing More Growth Declines

The White House has just redefined the word "recession" because, well, of course they did. A new GDP report is expected Thursday, which many experts anticipate will show growth declines for a second straight quarter. Since the White House put out an updated definition, the Biden administration can plan on evading the r-word entirely

Both official determinations of recessions and economists' assessment of economic activity are based on a holistic look at the data

  • including the labor market, consumer and business spending, industrial production, and incomes.
  • Based on these data, 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.

More than one-third of Americans believe the U.S. is in a recession

  • The standard definition of a recession is a negative GDP report two quarters in a row
  • Yellen has also acknowledged that the US experienced a negative report in Q1
  • However, the Biden administration attempts to use unemployment numbers to offset concerns about negative GDP growth
  • It's interesting to watch Biden and his administration claim and parrot one thing, while the majority of Americans are experiencing the total opposite

https://bigleaguepolitics.com/wh-redefines-recession-days-before-expected-gdp-report-showing-more-growth-declines/ 

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