The U.S. economy has declined for the second-straight quarter
as the country’s gross domestic product (GDP) declined by 0.9% in Q2.
The Bureau of Economic Analysis’s summary of the U.S. GDP follows the
recent debate over the technical definition of a recession.
America’s Q2 GDP Data Points to a Recession
One of the principal agencies of the U.S. Federal Statistical System,
the Bureau of Economic Analysis (BEA), released the commerce
department’s latest gross domestic product (GDP) statistics on Thursday. The report notes that the GDP data shows a 0.9% annualized decrease in economic growth during the second quarter.
“Real gross domestic product (GDP) decreased at an annual rate of 0.9
percent in the second quarter of 2022,” the BEA report explains. “The
price index for gross domestic purchases increased 8.2 percent in the
second quarter, compared with an increase of 8.0 percent in the first
quarter.”
A number of economists and analysts mocked U.S. bureaucrats and
members of the Federal Reserve for horrible economic predictions. “Just a
friendly reminder that the Fed in December put out a 4% GDP growth
forecast for 2022,” Northman Trader analyst Sven Henrich tweeted on Thursday. Lots of people on social media thanked U.S. president Joe Biden in a sarcastic manner for the country’s economic downturn. Most tweets loudly exclaimed that the U.S. is in fact in a recession after the country’s GDP declined by 0.9% in Q2.
White House Press Secretary Karine Jean-Pierre Claims 2 Decling GDPs Is ‘Not the Definition’ of a Recession
A week before the BEA released the GDP data, the Biden administration published two blog posts that claim
two GDP declines in a row does not constitute a recession. This sparked
a heated debate across the country on social media as numerous
analysts, economists, websites, and textbooks state the very opposite.
The BEA’s report on Thursday fueled the debate further; as many
individuals insisted that the U.S. economy is most definitely in a
recession.
When the White House correspondent for Fox News Peter Doocy asked
the White House press secretary Karine Jean-Pierre “If things are going
so great, why are White House officials are redefining recession?”
Jean-Pierre replied “We are not.” After the comment, Doocy stressed that
a recession is two consecutive quarters of negative GDP growth… How is
that not redefining recession?” Jean-Pierre insisted “That’s not the
definition.”
Even the economist and Nobel Laureate Paul Krugman told the public
to “ignore the two-quarter rule… We might have a recession, but we
aren’t in one now.” Gemini exchange co-founder Cameron Winklevoss
explained that he doesnt believe the Biden administration’s experts.
“According to the White House and the ‘experts’ that be, we’re not in recession,” Winklevoss wrote
on Thursday. “According to the numbers (two consecutive quarters of
declining GDP), we’re in a recession. I trust the numbers because the
numbers don’t lie, people do.”
The BEA’s GDP report follows the U.S. Federal Reserve raising
the federal funds rate 75 basis points (bps) for a second time in a row
this week. “The Fed is working expeditiously to bring inflation down,”
the Fed’s chair Jerome Powell said on Wednesday.
