Political Editors / July 26, 2022

In Brief: White House Redefines ‘Recession’ Ahead of Potentially Negative GDP Report

“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 Biden administration is actively seeking to gaslight the American public on the state of the economy. Months of sky-high inflation has the U.S. on the cusp of a recession, if it’s not already there. Via Libby Emmons:

The definition of an economic recession is commonly understood to be an economic decline, which is generally identified as by a fall in GDP over two consecutive quarters. But for the Biden administration in the White House, it’s time for a new definition. This redefining of “recession” comes as a report on GDP is expected Thursday.

“What is a recession?” The White House posed in a question on their blog on Thursday. The redefining of the term will mean that, in the event that the GDP growth declines for a second straight quarter, the White House won’t have to call it a recession.

Ergo, the Biden administration plays the “redefinition” gambit.

“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 wrote.

“Instead, both official determinations of recessions and economists’ assessment of economic activity are based on a holistic look at the data — including the labor market, consumer and business spending, industrial production, and incomes. Based on these data, it is unlikely that the decline in GDP in the first quarter of this year — even if followed by another GDP decline in the second quarter — indicates a recession.”

Read the whole story at The Post Millennial.

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