WASHINGTON—The Biden administration today announced its advance estimate for first-quarter real gross domestic product (GDP) growth was negative 1.4%, potentially marking the start of a recession. Real consumption grew at a 2.7%, held back by higher prices caused by high inflation. Real investment, an indicator of future growth, was only 2.3% as businesses drew down $34.5 billion in inventories. The price index, used to adjust GDP for inflation, was a staggering 8%, the highest level in 41 years.
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:
“The current economic malaise is a direct result of the Biden administration’s fiscal and regulatory policies, as well as monetary mismanagement by the Federal Reserve.
“President Biden’s war on America’s abundant energy production is choking off the lifeblood of our economy, decreasing overall production, and driving up the cost of nearly everything. Meanwhile, excessive and ineffective regulations are hamstringing businesses and slowing wage growth.
“The Fed’s financing of record-breaking levels of government spending caused the inflation shock. Spending trillions more of printed dollars, whether in the form of some Build Back Better legislation or student loan ‘forgiveness’ will be more fuel on the inflation fire, and risks pushing America even further towards recession. Americans need relief from this historic economic crisis. To give it to them, Biden must turn from his radical economic policies.”