Two consecutive quarters of negative Gross Domestic Product (GDP) is the common definition of a recession. The White House is already trying to spin the anticipated results and redefine what a recession is.
On Sunday, Treasury Secretary Janet Yellen acknowledged the real definition of a recession, on NBC’s “Meet the Press.”
But even while acknowledging the proper definition and acknowledging that a negative GDP number was likely coming, she tried to spin and claimed that this was “not an economy in recession,” trying to term it just a “slowdown” and a”transition.”
“The economy is slowing down,” Yellen said on NBC News’ ‘Meet the Press,’ adding, “a correction is appropriate” for ahealthy economy.
“The labor market is now extremely strong,” she said. “This is not an economy that’s in recession, but we’re in a period of transition in which growth is slowing. And that’s necessary and appropriate, and we need to be growing at a steady and sustainable pace. So, there is a slowdown, and businesses can see that and that’s appropriate, given that people now have jobs, and we have a strong labor market.”
“But you don’t see any signs now – a recession is a broad-based contraction that affects many sectors of the economy. We just don’t have that,” she added. “I would say that we’re seeing a slowdown.”
“Even if that number is negative, we’re not in a recession now, and we should not be characterizing that as a recession,” Yellen said.
So, the same Biden team that has lied about inflation and gas prices now wants to redefine what a recession is to deny reality. Yellen was wrong about inflation too, calling it “transitory.” It’s been “transitory” for about 13 months now.
Yellen trying to claim it wouldn’t be a recession was even a little too much for “Meet the Press” host Chuck Todd. Todd said she was “splitting hairs” and that it met the “technical definition: of recession.
“That’s not the technical definition,” Yellen argued. “There’s an organization called the National Bureau of Economic Research (NBER) that looks at a broad range of data in deciding whether or not there is a recession, and most of the data that they look at right now continues to be strong. I would be amazed if the NBER would declare this period to be arecession, even if it happens to have two quarters of negative growth. We’ve got a very strong labor market. When you’re creating almost 400,000 job a month, that is not a recession.”
Fox News’ White House Correspondent pointed out the problem with that spin, with a little history as follows:
Yellen wants to take credit for people coming back to work from the pandemic. Unfortunately, the reality of Biden’s economy is now hitting.
So, Yellen can spin, just as she did with inflation, but all the signs are there and if it comes in negative as expected, it’s going to be hard for the Biden team to argue it away. Unfortunately, this denial of reality is a continual problem of the Biden Administration.
We appreciate our friends at Republican Daily for content in this article.