The Biden administration is engaged in a pathetic attempt to brush off the economic woes people have been experiencing for months. Gas prices are far too high, the president admits, but it’s not his fault — it’s because of the big bad oil companies. Or maybe your local gas station operator. Inflation is cutting a massive chunk out of workers’ paychecks, the White House acknowledges, but not to worry — it’s just transitory. Or temporary. Or something. The economy has contracted for a second consecutive quarter, according to today’s GDP report, but have no fear: We’re not in a recession until Joe Biden says we are.
The truth is, we’ve been in a recession for the last several months — today’s report only confirmed it. The economy shrank by about 0.9% in the second quarter and 1.6% in the first quarter. This is, quite literally, the textbook definition of a recession. In fact, every period of two consecutive quarters of contraction since the dawn of government economic statistics has been labeled a recession — 1949, 1953, 1958, 1970, 1974, 1982, 1991, 2001, 2008, and 2020.
Just three days ago, Biden was insisting that “we’re not going to be in a recession.” His administration backed up this claim by attempting to redefine what a recession is, arguing that we need a “much broader spectrum of data points” to figure out what exactly this period of economic contraction is. I’m sure that will age about as well as Biden’s claim last year that inflation, which is now at a 40-year high, was just a temporary snag in the system.
The federal government can usually lie and gaslight its way out of any number of problems, but not when it comes to the economy. Because unlike other minor political back-and-forths that no one outside the Beltway really cares about, the economy affects people directly. This year alone, the average worker has lost about $3,400 in wages to inflation. We’re paying nearly 50% more for a tank of gas than we were a year ago. Groceries are about 5% more expensive than they were last year. These things add up fast, and they can and will crush those struggling to make ends meet.
That’s why consumers are starting to change their behavior. Spending is down across the board, as is business investment. In other words, it doesn’t matter what Biden calls it — the public knows when they’re staring down a recession, and they’re starting to prepare for it.
So, it is disingenuous and insulting for Biden to tell the public that their financial pain isn’t as bad as they think. And it will be the reason many Demcorats find themselves out of a job come November.
