“We don’t think we’re in a recession just yet,” Bank of America senior economist Aditya Bhave said, according to The New York Times. “But the bigger point here is that the underlying trend in domestic demand is weakening. You see a clear deceleration from the first quarter,” Bhave said. Others pushed back. “Rather than tackling the underlying economic problems, the White House is playing word games,” Phillip W. Magness, director of research and education at the American Institute for Economic Research, wrote Wednesday in The Wall Street Journal. “Economists have long defined a recession as ‘a period in which real GDP declines for at least two consecutive quarters,’ to quote the popular economics textbook by Nobel laureates Paul Samuelson and William Nordhaus,” he wrote. “This definition isn’t perfect, but it describes almost every downturn since World War II.” Magness said the Biden White House’s “attempt to wordsmith its way around a recession shows the dangers of politicizing economic terms.” Others criticized the establishment media for bowing to Biden. “The press is too busy carrying Joe Biden’s water to recognize the harm his policies have had on our economy. Texans see right through this spin when they pay dearly at the pump & grocery store,” said Republican Texas Attorney General Ken Paxton in a Wednesday post on Twitter.
Every Economics textbook from 80s, 90s, and early 2000s: “a recession is defined as two consecutive quarters of negative GDP growth.”Krugman: “Ignore that. Why? I don’t have a good reason. Also, inflation won’t be a problem.” — Cornelius X. Carroll 🇺🇸🇺🇦 (@CXCarroll) July 27, 2022
“Despite the brazen gaslighting from this administration and their cronies in the corrupt corporate media, we are in fact now in the Biden recession thanks to reckless spending by Democrats,” Republican Sen. Ted Cruz of Texas said in a tweet on Thursday. “It’s time for this White House to take responsibility, acknowledge reality and reverse course before we see more American families suffer,” he said.
The press is too busy carrying Joe Biden’s water to recognize the harm his policies have had on our economy. Texans see right through this spin when they pay dearly at the pump & grocery store. https://t.co/KTIKJnCoWa— Attorney General Ken Paxton (@KenPaxtonTX) July 27, 2022
Meanwhile, Biden tried to soften the blow of the GDP report. “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 Thursday on the Commerce Department’s report. “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,” Biden said. On Wednesday, the Federal Reserve raised the interest rates by three-quarters of a percentage point to fight inflation, The Washington Post reported. “Restoring price stability is just something we have to do,” Federal Reserve Chairman Jerome Powell said, according to the outlet. “There isn’t an option to fail to do that, because that is the thing that enables you to have a strong labor market over time.” This article appeared originally on The Western Journal.
It’s time for this White House to take responsibility, acknowledge reality and reverse course before we see more American families suffer. 2/x— Senator Ted Cruz (@SenTedCruz) July 28, 2022