Who would’ve thought, but printing money like it was Monopoly’s, reducing America’s energetic potential among other economic measures supported by experts™ was probably not the greatest idea. And now they have brought high inflation to the U.S., and now a more than likely recession.
According to the IMF, the U.S. economy will grow by 2.3% this year and just 1% next year. The Fund said their estimates do not show a recession in the U.S. economy… Yet. The restrictive monetary policies implemented to fight inflation in the U.S. may eventually increase unemployment and lead to recession.
On Thursday, the Bureau of Economic Analysis will publish its second-quarter GDP numbers, and most agree that it will mark the second consecutive quarter in which the economy contracted, which is the common definition of the forbidden word recession.
But here comes progressive newspeak.
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The White House issued a document denying that two straight quarters of contraction “is neither the official definition nor the way economists evaluate the state of the business cycle.”
However, this seems more of a preemptive strike than a true denial because the risk of recession is there. But the Biden administration is used to changing the meaning of words to suit their political ends. They’ve done the same with the definition of woman, just to name an example.
And the Biden administration enjoys a terrible track record in economic forecasting: they denied there’d be supply chain issues and inflation, but here we are.
Of course, this doesn’t mean the recession will necessarily be long if the correct measures are applied, but who can trust Joe Biden will do that?