Biden on recession: Remain calm, all is well

Biden on recession: Remain calm, all is well

By M.D. Kittle Empower Wisconsin

MADISON — Admitting you have a problem is the first step toward recovery. Unless, of course, you are President Joe Biden and his Democrat pals, who have spent much of the past week coming up with new definitions for recession.

While the latest economic data show the U.S. economy contracted for the second straight quarter — the standard definition of recession — old Joe says he’s not hearing the same signs.

“That doesn’t sound like a recession to me,” Biden told reporters Thursday as he stumbled through a set of White House talking points painting a rosier economic outlook.

All is not well, as Americans face the highest inflation rate since the devastating recession of the early 1980s and the Federal Reserve hikes interest rates in a desperate attempt to control soaring prices.

Biden’s own Commerce Department on Thursday estimated gross domestic product fell by 0.9% in the second quarter after falling by 1.6% in the first quarter. That certainly meets the traditional definition of a recession long used by economists, including Biden’s economic advisors.

But that didn’t stop the administration from pulling a Bill Clinton, parsing what the meaning of ‘is’ is.

“Even if that (second quarter GDP) number is negative, we are not in a recession now. I would warn that we should be not characterizing that as a recession,” Treasury Secretary Janet Yellen claimed on “Meet the Press” on Sunday.

“The first step out of a recession is to recognize you are in a recession. Yet President Biden refuses to even acknowledge this, attempting to redefine in Orwellian fashion what a recession is,” U.S. Rep. Mike Gallagher (R-Allouez) said. “It is time for Democrats to recognize reality, abandon their obsession with Build Back Better, and stop the war on domestic energy production.”

Nope. Biden and the Dems are doubling down on all that. On Thursday, the Democrat-led House passed another big spending bill, dumping another $280 billion on the inflationary fires to boost the U.S. semiconductor industry.

“Record high inflation and plummeting real wages have long been a recipe for a recession. Today’s negative GDP report makes clear what every American has felt for several months now, we are entering a recession, no matter how hard the Biden Administration tries to redefine it,” U.S. Rep. Bryan Steil (R-Janesville) said. “Congress and the Biden Administration need to admit the damage their policies are causing and change course.”

Nope. Biden and congressional Democrats — including former leftist nemesis Sen. Joe Manchin (D-W. Va.)  — are pushing a massive, ill-named Inflation Reduction Act that will do anything but reduce rapidly rising prices. The bill tosses $433 billion in government-printed money for the radical left’s extreme climate change agenda and more subsidies for the Affordable Care Act. It also socks corporations with higher taxes.

In short, the recipe for a more debilitating recession.

“Today’s GDP numbers showing the United States in a recession is a direct result of misguided spending and energy policies,” said Kurt Bauer, president and CEO of Wisconsin Manufacturers & Commerce. “While regrettable, the recession presents federal policymakers with an opportunity to reverse course and embrace domestic energy independence and other policies that will lead our country back to economic growth.”

WMC urges the Biden Administration to:

  • Stop stifling investment in the oil and gas industry by vilifying domestic fossil fuels
  • Stop opposing critical energy infrastructure, including oil and gas pipelines
  • Abandon policies and regulations intended to stop or limit domestic fracking
  • Stop Climate Czar John Kerry’s campaign to prevent banks from lending to the oil and gas industry
  • Abandon plans to raise taxes on businesses and families
  • Abandon plans to further inflate consumer prices with reckless new spending.