The Biden Admin Is Spinning The Definition Of ‘Recession’ Ahead Of Q2 GDP Report (VIDEO)

Written by K. Walker on July 26, 2022

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Brace yourselves. You know it’s going to be bad when they start the gaslighting this early.

While some economists quibble about how long GDP has to be in decline to be considered a recession, the rule of thumb for the past 50 years is two consecutive quarters of negative GDP growth.

   In 1974, economist Julius Shiskin came up with a few rules of thumb to define a recession: The most popular was two consecutive quarters of declining GDP. A healthy economy expands over time, so two quarters in a row of contracting output suggests there are serious underlying problems, according to Shiskin. This definition of a recession became a common standard over the years.
   The National Bureau of Economic Research (NBER) is generally recognized as the authority that defines the starting and ending dates of U.S. recessions. NBER has its own definition of what constitutes a recession, namely “a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.”
   The NBER’s definition is more flexible than Shiskin’s rule for determining what is a recession. For example, the coronavirus could potentially create a W-shaped recession, where the economy falls one quarter, starts to grow, then drops again in the future. This would not be a recession by Shiskin’s rules but could be under the NBER’s definition.
Source: Forbes

Economists are expecting that the GDP has slowed for a second consecutive quarter and we’ll see that when the GDP report is released later this week.

But now, officials in the Biden administration are already laying the groundwork to dismiss the next dismal report on the economy and gaslight voters heading into the midterms that what they’re seeing isn’t actually an indicator of recession even though it would fit the definition that has been accepted for the past five decades.

Last week, a blog post on WhiteHouse.gov began questioning the definition of “recession” as voter confidence in the President’s ability to steer the economy continues to sink even lower than his already embarrassingly low approval rating. A recent Quinnipiac poll revealed that only 28% of voters approve of Biden’s handling of the economy and only 31% approve of his performance as President.

The White House seems to have come up with a plan… deny reality and gaslight the American people.

On Monday, President Biden who appeared virtually due to his COVID infection from a mysterious source right after his trip to the Middle East told Fox News’s Peter Doocy, “We’re not gonna be in a recession.”

Also on Monday, White House Press Secretary Karine Jean-Pierre said that the Biden administration will not define the “R”-word and will leave that to the National Bureau of Economic Research to make the determination.

Fox News White House correspondent Jacqui Heirrich pointed out on Sunday that NBER had not announced the 2008 recession until a year after it had begun.

Kinda makes you think that perhaps there’s some political calculation here since Democrats control the White House, Senate, and House and a recession would reflect badly on their policies since their high-spending, red-tape policies are causing this situation.

On Sunday, Treasury Secretary Janet Yellen appeared on NBC’s “Meet the Press” insisting that the country is in an “economic slowdown” that is a “period of transition” — but insists that what the nation isn’t facing is a recession.

In another portion of the interview, Yellen simply denies that two quarters of negative growth is the thing that defines a recession.

She also doesn’t think that you should be bracing for one. Perhaps the contraction in GDP is just “transitory” like the White House had assured us that inflation was.

Here is the full segment:

But she’s not the only one that the Biden admin is trotting out there.

White House Economic Advisor Jared Bernstein went on CNN and CNBC’s “Squawk Box” on Monday morning repeating the same line as Yellen. Bernstein said, “the idea that two quarters of negative GDP growth is the technical definition of a recession is wrong.”

Director of the National Economic Council, Brian Deese, said the same thing early Monday morning on CNN.

Like a good White House stooge, Deese also blamed the economic situation in the United States on Putin.

Of course. It’s never their fault — inflation, gas prices, baby formula and food shortages are all things that happened to the Biden administration, not because of the rampant incompetence of the ruling Democrats and Obama’s “B” team.

The worst part of it is that the Partisan Presstitutes don’t just let them get away with it, they help spread the message and call out right-wing media as “fake news.”

Now that’s some epic gaslighting.

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ClashDaily's Associate Editor since August 2016. Self-described political junkie, anti-Third Wave Feminist, and a nightmare to the 'intersectional' crowd. Mrs. Walker has taken a stand against 'white privilege' education in public schools. She's also an amateur Playwright, former Drama teacher, and staunch defender of the Oxford comma. Follow her humble musings on Twitter: @TheMrsKnowItAll and on Gettr @KarenWalker