Thursday, July 28th 2022, 5:51 pm
The U.S. economy shrank nearly one percent from April through June, the second straight quarter Gross Domestic Product — a broad measure of economic performance — contracted, fueling concerns the country is in a recession and criticism that President Biden and Democrats are to blame.
“Biden inherited the presidency with an economy that was ready to rebound after the pandemic,” tweeted Rep. Stephanie Bice (R-OK5). “Instead, we now have skyrocketing inflation and a country in recession. This is what you get from one-party Democratic rule in Washington.”
The 0.9 percent decline in GDP reported Thursday morning by the U.S. Department of Commerce follows a 1.6 percent contraction in the first quarter of 2022. Consecutive quarters of negative growth are considered proof of a recession in many countries, but economists in the U.S. generally weigh other indicators, as well.
"We've a record job market of record unemployment of 3.6 percent." said the president Thursday at the White House. "We created 9 million new jobs so far just since I've became president."
In an earlier statement, President Biden said the slowdown the nation is experiencing is not consistent with the true definition of a recession and actually will be helpful in the long term.
“Coming off of last year’s historic economic growth – and regaining all the private sector jobs lost during the pandemic crisis – it’s no surprise that the economy is slowing down as the Federal Reserve acts to bring down inflation,” Biden said in a statement. “But even as we face historic global challenges, we are on the right path, and we will come through this transition stronger and more secure.”
"Overall, with a slowdown in private demand, this report indicates an economy that’s transitioning to more steady sustainable growth," U.S. Treasury secretary Janet Yellen said.
"This administration and Democrats are simply not listening to what the American people are saying," said Rep. Kevin Hern (R-OK1) in an interview Thursday.
Hern believes the country is in a recession, whether the administration wants to acknowledge it or not. More importantly, he said, is the other word the administration prefers to avoid.
"The No. 1 most important issue in America today with people in my district and across Oklahoma is inflation," said Hern.
Other members of the delegation agree.
Bice and others point to policies that are moving the country away from fossil fuels, while authorizing massive (and they say unnecessary) expenditures for things like COVID-19 relief, infrastructure, and sustainable energy, and then leaving it to the Federal Reserve to clean up the resulting inflation.
"We have the Fed trying to curtail inflation by rising interest rates," Hern said. “But on the other side, we have Democrats wanting to spend more and more money."
The next update on inflation comes out in just under two weeks, on Aug. 10.
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