WASHINGTON—The Department of Commerce announced its advance estimate for second-quarter real gross domestic product (GDP) growth was negative 0.9%, the second consecutive quarter of negative growth, and indicating the U.S. economy is in recession. Real consumption grew a mere 1.0%, as families’ purchasing power was eroded by higher prices. The GDP price index, which measures changes in the price of goods and services produced in the U.S., reached an astounding 8.7%, the highest in 41 years. Real investment, which is a leading indicator of the business cycle, collapsed in the second quarter, falling 13.5%, signaling a recovery is not likely imminent.
EJ Antoni, research fellow in regional economics with The Heritage Foundation’s Center for Data Analysis, released the following statement Thursday on these disastrous numbers and the Biden administration’s harmful economic policies responsible for it:
“Over the last 18 months, Congress, President Biden, and the Federal Reserve set our nation up for disaster. The consequence is that we are now in a recession.
“The current economic situation is the consequence of profligate federal spending financed by printed money. Now, instead of acknowledging responsibility for their failed policies, the Biden administration chooses to play word games, just like they did with inflation. The latest of their verbal gymnastics is an attempt to redefine a ‘recession’ and deny the reality of the current moment. It adds insult to injury for hundreds of American families when the Biden administration engages in this Orwellian doublespeak. Make no mistake—while Biden officials debate the meaning of ‘recession,’ working and middle-class Americans have been living in one for months.
“Unlike the bureaucrats here in Washington, those American families have been feeling the economic pain and were well aware of the reality of this recession long before today’s numbers were released. By denying it’s even happening, the Biden administration is demonstrating just how out of touch they are.”
BACKGROUND: In June, the Department of Commerce announced its final estimate of the first quarter GDP number with the economy contracting 1.6%, worse than originally projected. All the economic indicators continue to expose just how bad our economy is under Biden. However, this administration continues to defend their economic policies.
White House Press Secretary Karine Jean-Pierre claimed a couple of weeks ago that America is “stronger economically than we have been in history” under Joe Biden. This week, Biden continued to downplay the economic downfall stating, “I don’t think we’re going to be in a recession” and trying to redefine what recession really means. Joe Biden and his administration can try to change the definition, but they can’t change the economic numbers and the pain Americans are feeling every single day.