After people have accused bureaucrats and government agencies of changing definitions during the last few years, Joe Biden’s administration now claims that a second consecutive quarter of negative gross domestic product (GDP) does not indicate the U.S. is in a recession. This despite the fact two consecutive quarters of negative gross domestic product (GDP) have been considered to be a recession by economists around the world for many years. Furthermore, U.S. treasury secretary Janet Yellen now insists that two declining GDPs is “not the technical definition.”
White House claims that two consecutive quarters of falling GDP does not constitute a recession
This week market analysts, news outlets, and economists are accusing the White House of “Soviet-level propaganda” after the Biden administration redefined the technical definition of a recession. On July 21, 2022, the Biden administration published a blog post called “How do economists determine whether the economy is in a recession?”
“While some maintain that two consecutive quarters of falling real GDP constitute a recession, that is neither the official definition nor the way economists evaluate the state of the business cycle,” the White House report says.
The White House can declare a recession only if it gives its economists permission.
— zerohedge (@zerohedge) July 25, 2022
A few days later, the White House posted another blog posting that said U.S. treasury Secretary Janet Yellen claimed that there were two consecutive declines in GDP. Yellen appeared on NBC’s “Meet the Press” with Chuck Todd and when he asked: “If the technical definition is two-quarters of contraction, you’re saying that’s not a recession?”
“That’s not the technical definition,” Yellen replied. “There is an organization called the National Bureau of Economic Research that looks at a broad range of data in deciding whether or not there is a recession. They continue to look at strong data. They would have to declare the current period a recession even if there is two-quarters of negative economic growth. Our labor market has been very stable. when you are creating almost 400,000 jobs a month, that is not a recession.”
Everyone, except for the White House who tries to make us laugh about our current recession
— Ashley St. Clair (@stclairashley) July 25, 2022
Yellen and the Biden administration’s recession arguments are not being taken too kindly, as many people have said that two declining GDPs equals a recession and have said so for decades. Investopedia defines a recession as “two consecutive quarters of negative economic growth as measured by a country’s gross domestic product.” Many other economic resources and textbooks declare that it is the technical definition of a recession, despite the bureaucrats’ comments.
Can’t wait to hear the White House Press Secretary simultaneously blame Putin for recession… and at the same time say we have the “best economic numbers in history.”
— Tim Young (@TimRunsHisMouth) July 25, 2022
Peter Schiff (economist and Gold Bug) mocked Yellen’s definition on Twitter when he said: “According to Treasury Sec. Janet Yellen, even if the U.S. economy experiences two consecutive quarters of negative GDP, the economy won’t be in recession. Boom is the new normal. Will she be singing the same tune after GDP drops more in Q3 than either of the first two quarters?”
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Northman Trader’s Sven Henrich predictedPoliticians would alter the definition of July 6th, and Gerald Celente, Trends Journal’s trends forecaster, said the exact same thing during a July 9th interview with him.
Biden’s economic top priority seems to be changing what constitutes a recession.
— Tom Cotton (@TomCottonAR) July 25, 2022
Will O’Grady, a Republican National Committee spokesperson explained on Monday that “redefining” the definition of a recession showcases how “out of touch” Biden’s team is with Americans.
“Joe Biden turned a recovery into a likely recession. It is not possible to change the meaning of the term, as Democrats have wasted $1.9 trillion. The result has been skyrocketing prices for Americans. This further underscores how out of touch Biden and Democrats are with the pain families are feeling,” O’Grady stressed.
Republican Thomas Massie denounced the White House for trying to redefine a recession technically and made a comparison to bureaucrats all over the globe. changed the definition of a vaccine. “When the vaccines failed to prevent infection, they redefined vaccination,” Massie saidMonday. “When the economy fails to grow, they redefine recession.”
How do you feel about the White House being charged with changing the definitions of recession? Comment below and let us know how you feel about the subject.
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