After people have accused bureaucrats and government agencies of changing definitions over the past few years, Joe Biden’s administration is now saying that a second consecutive quarter of negative gross domestic product (GDP) does not indicate that the United States is in recession. This despite the fact that two negative GDPs have always been considered a recession in the eyes of economists around the world for years. Moreover, US Treasury Secretary Janet Yellen now insists that two falling GDPs are “not the technical definition”.
White House says two straight quarters of GDP decline does not constitute a recession
This week, market analysts, media 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 titled “How Do Economists Determine if the Economy is in a Recession?”
“While some argue that two consecutive quarters of real GDP decline constitutes a recession, that is neither the official definition nor how economists assess the state of the business cycle,” the White House report said.
It’s not a recession until the White House gives economists on its payroll permission to declare it a recession.
— zerohedge (@zerohedge) July 25, 2022
Also, a few days later, the White House published another blog post that states that US Treasury Secretary Janet Yellen is also saying that two falling GDPs in a row is not the right definition. Yellen appeared on NBC’s “Meet the Press” with Chuck Todd and when he asked, “If the technical definition is two quarters of a 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 wide range of data to decide whether or not there is a recession. And most of the data they’re looking at right now continues to be solid. I would be surprised if they declared this period a recession, even though it happened to have two quarters of negative growth. We have a very strong labor market. when you create close to 400,000 jobs a month, that’s not a recession.
Hello everyone except the White House for trying to enlighten us about being in a recession
— Ashley St. Clair (@stclairashley) July 25, 2022
Yellen’s recession arguments and the Biden administration aren’t taken too kindly, as many people have said that two falling GDPs equal a recession and have been saying so for decades. Investopedia defines a recession as “two consecutive quarters of negative economic growth measured by a country’s gross domestic product.” Many other economic resources and textbooks state that this is the technical definition of a recession, despite comments from bureaucrats.
I can’t wait to hear the White House press secretary blame Putin for the recession…and say at the same time that we have the “best economic numbers in history”.
— Tim Young (@TimRunsHisMouth) July 25, 2022
The Gold Bug and Economist Peter Schiff mocked Yellen’s definition on Twitter when he said, “According to Treasury Sec. Janet Yellen, even if the US economy experiences two consecutive quarters of negative GDP, the economy will not be in recession. The bust is the new boom. Will she sing the same tune after GDP fell more in the third quarter than in the first two quarters? »
Redefining vaccination in economic definitions has similarities to those of Orwell in 1984
Northman Trader’s Sven Henrich predicted that politicians would change the definition on July 6, and Trends Journal trend forecaster Gerald Celente said the same when Bitcoin.com News interviewed him on July 9.
The Biden administration’s top economic priority appears to be changing the definition of a recession.
— Tom Cotton (@TomCottonAR) July 25, 2022
Will O’Grady, a spokesman for the Republican National Committee, explained on Monday that “redefining” the definition of a recession shows how “out of touch” Biden’s team is with Americans.
“Joe Biden turned a recovery into a probable recession. Redefining the word won’t fix the fact that Democrats squandered $1.9 trillion, resulting in skyrocketing costs for Americans. It further underscores how Biden and Democrats are out of touch with the pain families are feeling,” O’Grady pointed out.
Republican Thomas Massie also criticized the White House for trying to change the technical definition of a recession and compared it to how bureaucrats around the world changed the definition of a vaccine. “When vaccines failed to prevent infection, they redefined vaccination,” Massie said. said In Monday. “When the economy fails to grow, they redefine recession.”
What do you think of the White House being accused of changing the definition of a recession? Let us know what you think about this topic in the comments section below.
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