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. According to the report, the GDP data showed a 0.9% decrease in annualized economic growth for 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.”
WE HAVE RECEPTION
Q2 GDP: -0.9%; EXP 0.4%— zerohedge (@zerohedge) July 28, 2022
Many economists mocked the Federal Reserve members and U.S. bureaucrats for making terrible economic forecasts. “Just a friendly reminder that the Fed in December put out a 4% GDP growth forecast for 2022,” Northman Trader analyst Sven Henrich tweetedOn Thursday. There are many people using social media thanked U.S. president Joe Biden in a sarcastic manner for the country’s economic downturn. The majority tweetsLoud 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
Two blog posts by the Biden administration, published a week prior to the BEA releasing the GDP data. They claim that two consecutive GDP drops does not indicate a recession. On social media, there was heated discussion as many analysts, economists and websites stated the exact 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.
Strange that there were two consecutive quarters with a decline in GDP. pic.twitter.com/CnxlV9mvWW
— Sven Henrich (@NorthmanTrader) July 28, 2022
Peter Doocy, White House correspondent on Fox News 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.”
Paul Krugman, economist and Nobel laureate, is no stranger to this. 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.
Officially, we’re in a recession.
Qu2 GDP fell for the second straight quarter.
— Pomp 🌪 (@APompliano) July 28, 2022
“According to the White House and the ‘experts’ that be, we’re not in recession,” Winklevoss wroteOn 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.
What do you think about the U.S. economy’s GDP declining for a second consecutive quarter? Please comment below to let us know your thoughts on this topic.
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