Since 1970, there has been a simple definition of a recession: Two consecutive quarters of negative growth in GDP. Everybody who took Economics 101 was taught the same thing. Until recently, there was no disagreement on the subject.
The only instance in modern history when two consecutive quarters of negative economic growth didn’t make a recession, was during George W. Bush’s term. The deciding factor was a quarter of negative growth.
Question: Out of the past 10 times the U.S. economy has experienced two consecutive quarters of negative economic growth, how many times was a recession officially declared?
Answer: 10. pic.twitter.com/yrR1kwlC4r
— Michael R. Strain (@MichaelRStrain) July 25, 2022
With the second quarter of negative growth set to be revealed, it would seem that there is no way to argue that the country is already in recession. You would be wrong.
The Biden administration has spent a lot of time redefining the term. They insist that it no longer applies due to “reasons.” Redstate has also reported on some absurd claims.
The press is now participating in this absurd, dishonest act. The Associated Press and The New York Times published breathless pieces Wednesday morning letting everyone know that two consecutive quarters of negative growth are not a sign of a recession.
The U.S. economy is at the edge of a recession according to one common definition: if the economy shrinks for consecutive quarters,
But that definition doesn’t count https://t.co/Bw1am1viQ4
— July 26, 2022, The Associated Press (@AP).
These people don’t care about anything. It is impossible to know the truth, it is all partisanship. How can I find out? The same Associated Press, which is currently rushing for a definition of a recession to protect Joe Biden…once freely used the technical definition.
— Damin Toell (@damintoell) July 26, 2022
Hypocrisy only grows when there are more media outlets and more journalists. Young Americans for Liberty compiled a montage, mostly dating back to 2020 when Donald Trump was trying to declare a recession (that happened because COVID-19 states were forcibly closed down for months). While they were not arguing nuance MSNBC, CNN and others supported the “two consecutive quarters” definition of the term, repeatedly using it.
Then vs. now: What is a “recession?”
“The party told you to reject the evidence of your eyes and ears. It was their final, most essential command.”
We are living in a George Orwell novel. pic.twitter.com/Woa3i9evNn
— Young Americans for Liberty (@YALiberty) July 26, 2022
The best part of the clip, I believe, is the ending. John Harwood from CNN, who is a stenographer for Biden White House claims that one-quarter of negative GDP growth under Trump should be considered a recession. Harwood claims that two consecutive quarters of negative growth, 9.1 % inflation, low real wages, and a labor shortage are not a sign of a recession. He claimed that there were no signs of the recession back in June. It’s farcical.
No matter what “fact-checker”, these facts are hard and simple. Based on modern economics’ technical definition, we are currently in recession. Biden and the media will not change this. Let them flail, while we point and laugh.
The truth is being known by the American people, which will serve as a test of whether members of mainstream media still have any dignity. To serve the White House, who will not stand up? You can cross John Harwood from the list.