After people have accused bureaucrats and government agencies of changing definitions during the last few years, Joe Biden’s administration now claims that a second consecutive quarter of negative gross domestic product (GDP) does not indicate the U.S. is in a recession. This is despite the fact that two negative GDPs have always been considered a recession in the eyes of economists worldwide for years. Furthermore, U.S. treasury secretary Janet Yellen now insists that two declining GDPs is “not the technical definition.”
White House Claims Two Consecutive Quarters of Falling GDP Does Not Constitute a Recession
This week market analysts, news outlets, and economists are accusing the White House of “Soviet-level propaganda” after the Biden administration redefined the technical definition of a recession. On July 21, 2022, the Biden administration published a blog post called “How do economists determine whether the economy is in a recession?”
“While some maintain that two consecutive quarters of falling real GDP constitute a recession, that is neither the official definition nor the way economists evaluate the state of the business cycle,” the White House report says.
It’s not a recession until the White House gives economists on its payroll permission to declare it a recession
— zerohedge (@zerohedge) July 25, 2022
Furthermore, a few days later, the White House published another blog post that says U.S. treasury secretary Janet Yellen also claims that two declining GDPs in a row is not the correct definition. Yellen appeared on NBC’s “Meet the Press” with Chuck Todd and when he asked: “If the technical definition is two-quarters of contraction, you’re saying that’s not a recession?”
“That’s not the technical definition,” Yellen replied. “There is an organization called the National Bureau of Economic Research that looks at a broad range of data in deciding whether or not there is a recession. And most of the data that they look at right now continues to be strong. I would be amazed if they would declare this period to be a recession, even if it happens to have two-quarters of negative growth. We have a very strong labor market. when you are creating almost 400,000 jobs a month, that is not a recession.”
Good morning to everybody except the White House for attempting to gaslight us about being in a recession
— Ashley St. Clair (@stclairashley) July 25, 2022
Yellen and the Biden administration’s recession arguments are not being taken too kindly, as many people have said that two declining GDPs equals a recession and have said 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 declare that it is the technical definition of a recession, despite the bureaucrats’ comments.
Can’t wait to hear the White House Press Secretary simultaneously blame Putin for recession… and at the same time say we have the “best economic numbers in history.”
— Tim Young (@TimRunsHisMouth) July 25, 2022
Gold bug and economist Peter Schiff mocked Yellen’s definition on Twitter when he said: “According to Treasury Sec. Janet Yellen, even if the U.S. economy experiences two consecutive quarters of negative GDP, the economy won’t be in recession. Bust is the new boom. Will she be singing the same tune after GDP drops more in Q3 than either of the first two quarters?”
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Northman Trader’s Sven Henrich predicted that politicians would change the definition on July 6, and the Trends Journal trends forecaster Gerald Celente said the same thing when Bitcoin.com News interviewed him on July 9.
The Biden Administration’s top economic priority appears to be changing the definition of a recession.
— Tom Cotton (@TomCottonAR) July 25, 2022
Will O’Grady, a Republican National Committee spokesperson explained on Monday that “redefining” the definition of a recession showcases how “out of touch” Biden’s team is with Americans.
“Joe Biden turned a recovery into a likely recession. Redefining the word will not fix the fact that Democrats wasted $1.9 trillion, resulting in skyrocketing costs for Americans. This further underscores how out of touch Biden and Democrats are with the pain families are feeling,” O’Grady stressed.
Republican Thomas Massie has also criticized the White House for attempting to change the technical definition of a recession and compared it to how bureaucrats worldwide changed the definition of a vaccine. “When the vaccines failed to prevent infection, they redefined vaccination,” Massie said on Monday. “When the economy fails to grow, they redefine recession.”
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Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for Bitcoin.com News about the disruptive protocols emerging today.
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