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Tipsheet

First Quarter GDP Shocks Economists As Recession Looms

AP Photo/Richard Drew

The U.S. economy shrunk by 1.4 percent in the first quarter of 2022, shocking economists who predicted around one percent growth in America's Gross Domestic Product (GDP).

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Per CNBC:

Gross domestic product unexpectedly declined at a 1.4% annualized pace in the first quarter, marking an abrupt reversal for an economy coming off its best performance since 1984, the Commerce Department reported Thursday.

The negative growth rate missed even the subdued Dow Jones estimate of a 1% gain for the quarter. GDP measures the output of goods and services in the U.S. for the three-month period.

The data from the U.S. Department of Commerce's Bureau of Economic Analysis paints a bleak picture of the impacts Biden's "Build Back Better" promises and policies have had on the United States over the last 15 months. 

On CNBC, a panel referenced the already 40-year high inflation Americans are experiencing and said Thursday's GDP number would "immediately" bring about talk of "stagflation."

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Sure enough, that's what the reaction has been.

Thursday's release also showed that "[p]rices increased sharply during the quarter, with the GDP price index deflator rising 8%," as CNBC explains, echoing the four-decade highs measured by the Consumer Price Index.  

It's not exactly the kind of economic situation a president and his party look for months before midterm elections after claiming on the campaign trail in 2020 that he wouldn't shut down the economy or the country and would build the country "back better" than it was under former President Donald Trump.

Meanwhile over on CNN, damage control mode for Democrats is in full swing where the economic shock was written off by a "reporter" as "quirky" and "weird" and definitely not at all related to President Biden and congressional Democrats' spending spree and other economic missteps: 

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Perhaps CNN should take a look at Joe Biden's policies — or Joe Biden himself — if they're looking for "quirky components" of the U.S. economy. 

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