U.S. Gross Domestic Product declined .9 percent in the second quarter of 2022 according to the Bureau of Economic Analysis. Thursday's report makes for the second consecutive quarter of negative GDP movement, after declining 1.6 percent in the first quarter, and makes the Biden recession official.
??SECOND QUARTER GDP CONTRACTS -0.9%. (First reading) TWO NEGATIVE QUARTERS FOR THE US ECONOMY. RECESSION!??
— Dagen McDowell (@dagenmcdowell) July 28, 2022
The Bureau of Economic Analysis reported that the decrease in real GDP "reflected decreases in private inventory investment, residential fixed investment, federal government spending, state and local government spending, and nonresidential fixed investment that were partly offset by increases in exports and personal consumption expenditures (PCE)" while [i]mports, which are a subtraction in the calculation of GDP, increased."
As Townhall reported in April, initial data for Q1 showed GDP declining 1.4 percent, a negative read that was revised last month to an even greater contraction of -1.6 percent.
"We are officially in recession," - Fox Business' @MariaBartiromo on Q2 GDP report. pic.twitter.com/Sc65QGNF3E
— House Republicans (@HouseGOP) July 28, 2022
Data be damned, the Biden administration has launched a frenzied attempt to redefine the term "recession" and insists that a recession is not here while the president himself on Wednesday told Americans "we're not going to be in a recession."
In a statement released after the Q2 GDP number debunked Biden's claim and proved the U.S. economy is in recession, the president still tried to brag about "last year's historic economic growth" and "regaining all the private sector jobs lost during the pandemic," Biden further tried to revise history by saying "it's no surprise that the economy is slowing down."
Refusing to say the "R" word, Biden maintained that his administration has America "on the right path" and promised "we will come through this transition stronger and more secure." For the White House, the word "recession" has evidently been replaced with "transition" — the same code word used for Biden's war on American energy.
Never mind, apparently, that Biden's National Economic Council director Brian Deese stated in 2008 that "economists have a technical definition of recession, which is two consecutive quarters of negative growth."
The U.S. is now in a recession, according to top Biden economic adviser Brian Deese: pic.twitter.com/4APKuiis4Y
— Kyle Martinsen (@KyleMartinsen_) July 28, 2022
But Biden and his administration continue to deny their role in setting off inflation that's risen to 40-year highs and delivered a four percent cut to Americans' real wages while glossing over the fact that the economy is on a path to serious recession while inflation accelerates and the Fed hikes interest rates.
Biden, of course, has most of the mainstream media on his side to parrot the White House denials of a recession and attempted revisions of reality, but those attempts to invalidate what Americans are feeling haven't been going well.
On Wednesday, the Federal Reserve announced its fourth consecutive interest rate hike — another 75 basis points — in an attempt to slow inflation that's surged to a 41-year high that's likely to make recession even worse, especially if additional interest rate increases happen.
Meanwhile Congress, thanks to a reported deal with Senator Joe Manchin (D-WV), is still pressing ahead with legislation that would increase spending and raise taxes on Americans — more of the same economic chaos from Democrats that plunged the U.S. into an inflation crisis and triggered Fed interest rate hikes that have now led the country into a recession. Manchin has previously said that "I don’t think during a time of recession you mess with any of the taxes, or increase any taxes."
Cc @Sen_JoeManchin — do you really think an official recession is the right time for a major tax hike?
— Matt Whitlock (@mattdizwhitlock) July 28, 2022
What will hardworking West Virginians think about you fighting for electric vehicle tax credits for rich people during an economic downturn? https://t.co/ZBaXeRBIha
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