Conservative groups are criticizing President Biden and his administration for trying to “highlight” Americans into believing the country is not in a recession.
The country entered a technical recession as the US economy contracted 0.9%, which means that the country saw a negative GDP number for the second consecutive quarter.
Ahead of the country’s July 28 advance estimate of GDP, the White House Council of Economic Advisers said that even if the number was negative, it was still “unlikely” to be an indication that the country was in a recession.
“Based on this data, the drop in GDP in the first quarter of this year – even if followed by another drop in GDP in the second quarter – is unlikely to indicate a recession,” said a post on the White House website. .
The US economy enters a technical recession after growth faltered 0.9% in the second quarter
After the GDP figure was announced, Biden was quick to say that the US “is not in a recession,” adding that “there is no recovery because the economy is slowing.”
Will Heald, executive director of consumer research for Fox News Digital, said the country is in the middle of a recession despite what Biden and his administration are proposing.
“The GDP numbers don’t lie – under the Biden administration, we’re building a new middleman,” Held said. “No matter how the White House tries to spin it, the Biden stagnation is here to stay as average Americans face higher prices from the grocery store to the gas pump.”
He said in an interview that the White House’s current calculations of whether the country is in a recession are based on the fact that there are no high unemployment rates yet.
“What I understand is [White House] It relies heavily on the fact that we haven’t seen huge numbers of unemployment yet, but layoffs are going up, and it may just be a lagging indicator.”
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“What we’ll likely see over the next three months is that unemployment is going to go up, and I think we’re really seeing increases there,” Held added.
Other members of the Biden administration have also said that the country is not in a recession.
Treasury Secretary Janet Yellen said at a press conference on July 28 that most economists define a true recession as “widespread weakness of the economy” that also involves a significant number of job losses and business closures, among other things.
“That’s not what we’re seeing now,” Yellen said.
The Executive Director of Heritage Action for America, Jessica Anderson, said the Biden administration is trying to redefine the term “stagnation.”
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“No matter how the Biden administration attempts to highlight the American people or redefine the term ‘recession,’ we all feel the inflationary effects of his economic policies in our portfolios,” Anderson said. With our economy’s growth slowing, inflation rising, and interest rates rising, the American people are pleading with the Biden administration and Democrats in Congress to stop their recklessness. spending and arranging our financial house.”
FOX Business’s Megan Heaney and Brooke Singman contributed to this report.