After people have accused bureaucrats and government agencies of changing definitions over the past few years, the Joe Biden administration now argues that a negative gross domestic product (GDP) for the second consecutive quarter does not indicate that the US is in a recession. And this despite the fact that two negative GDP for years has always been considered a recession in the eyes of economists around the world. In addition, US Treasury Secretary Janet Yellen now insists that two GDP cuts are “not a technical definition.”
White House says two-quarter fall in GDP is not a recession
This week, market analysts, news outlets and economists accusation White House “Soviet-level propaganda” after the Biden administration revised the technical definition of a recession. On July 21, 2022, the Biden administration released Blog Post titled “How do economists determine if an economy is in a recession?”
“While some argue that two consecutive quarters of falling real GDP constitute a recession, this is neither the official definition nor how economists view the state of the business cycle,” the White House report said.
It’s not a recession until the White House gives its payroll economists permission to declare it a recession.
— zero hedge (@zerohedge) July 25, 2022
In addition, a few days later, the White House published another Blog Post it says US Treasury Secretary Janet Yellen is also arguing that two straight declines in GDP are not the correct definition. Yellen appeared on NBC’s Meet the Press with Chuck Todd, and when he asked, “If the technical definition is a two-quarter cut, are you saying it’s not a recession?”
“That’s not a technical definition,” Yellen replied. “There is an organization called the National Bureau of Economic Research that looks at a wide range of data to decide if there is a recession. And most of the data they’re looking at right now is still strong. I would be surprised if they declared this period a recession, even if it had two quarters of negative growth. We have a very strong labor market. when you create almost 400,000 jobs a month, it’s not a recession.”
Good morning to everyone except the White House for trying to gaslight the recession.
— Ashley St. Clair (@stclairashley) July 25, 2022
The recession arguments of Yellen and the Biden administration are not being received too favorably, as many people have said that two declines in GDP equals a recession, and have been saying so for decades. Investopedia defines a recession as “two consecutive quarters of negative economic growth as measured by a country’s gross domestic product”. Many other economic resources and textbooks state that this is the technical definition of a recession, despite bureaucratic comments.
I can’t wait for the White House press secretary to simultaneously blame Putin for the recession… and at the same time say that we have “the best economic performance in history.”
— Tim Young (@TimRunsHisMouth) July 25, 2022
Gold bug and economist Peter Schiff ridiculed Yellen’s definition on Twitter when he said, “According to the US Treasury Secretary. Janet Yellen, even if the US economy has negative GDP for two consecutive quarters, the economy will not be in recession. Bust is the new boom. Will she sing the same song after GDP falls more in the third quarter than in any of the first two quarters?”
Redefining vaccination with economic definitions shows similarities to Orwell’s 1984
Sven Henrich from Northman Trader predicted that politicians will change the definition on July 6, and Trends Journal trend forecaster Gerald Celente said the same when Bitcoin.com News interviewed him on July 9.
It appears that the top economic priority of the Biden administration is to change the definition of a recession.
— Tom Cotton (@TomCottonAR) July 25, 2022
Will O’Grady, Republican National Committee spokesman explained on Monday that “redefining” the definition of a recession demonstrates how “out of touch” the Biden team is with the Americans.
“Joe Biden turned the recovery into a recession. Redefining the word won’t fix the fact that Democrats have wasted $1.9 trillion, resulting in skyrocketing costs for Americans. This highlights once again how disconnected Biden and the Democrats are from the pain that families are experiencing, ”O’Grady said.
Republican Thomas Massey also criticized the White House for trying to change the technical definition of a recession and compared it to how bureaucrats around the world the definition of a vaccine has changed. “When vaccines failed to prevent infection, they redefined vaccination.” – Massey said on Monday. “When the economy can’t grow, they redefine a recession.”
What do you think about accusing the White House of changing the definition of a recession? Let us know what you think about it in the comments section below.
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