The much-anticipated GDP report Thursday painted a bleak picture that surprised no one. Even Job Biden seemed to grasp that less than two years into his presidency, he has guided and steered the U.S. economy about as effectively as a 16-year-old taking their drivers test on the 405 freeway in Los Angeles.
Biden said that it is “no surprise that the economy is slowing down.” He’s right about that. The weeks of trying to spin his way out of that reality ended with the Commerce Department reporting that the gross domestic product shrank by 09% on an annualized basis from April to June of this year.
Is Biden worried? Busily looking for ways to solve the crisis? Not really. A member of his staff wrote a statement that included this.
“Coming off of last year’s historic economic growth – and regaining all the private sector jobs lost during the pandemic crisis – it’s no surprise that the economy is slowing down as the Federal Reserve acts to bring down inflation. But even as we face historic global challenges, we are on the right path and we will come through this transition stronger and more secure.”
Biden also added that his economic plan is focused on bringing inflation down without giving up all the economic gains he believes have been made.
Memo to Biden; inflation is not down; it is at the highest level in over 40 years.
The rule of thumb in economics is that if the GDP drops for two consecutive quarters, it signals the official start of a recession.
We’re in a recession.