By Deirdre Purdy
FOR 3 YEARS, RECESSION WARNINGS KEPT US SHOOK
Threats and fears of a U.S. recession have been the staple of news coverage since 2020. For the last 3 years, economists, pundits and papers have continually warned that there’s NO WAY the U.S. can avoid recession.
When the former president left office, while Covid spread around the world, the American economy was a shambles. 2020, his last year in office, was the worst year for economic growth since World War II. There were staggering job losses, waves of small-business closures and mounting inequality.
Republicans fought the $1.9 trillion economic aid package that Democrats put into place in early 2021 calling it “reckless spending” that would fuel inflation.
The inflation rate did rise to its highest level in 40 years, due to necessary spending and world events (pandemic, invasion), but when the Federal Reserve began raising rates, inflation subsided. Inflation is now less than 3%.
Even as inflation dropped steadily, however, the recession warnings from the experts continued. World Bank: “Risk of Global Recession rises in 2023.” (Sept 2022). CNBC: “Economists [Say] Chance of a 2022 Recession is Rising.” (July 2022). World Economic Forum: “Recession risks re-ignited by bank crisis – lost decade of growth.” (March 2023).
Be afraid, be very afraid.
Endless recession threats may be the reason that, despite the facts, many Americans believe the economy is in poor shape. It is not. As the months go by,the U.S. economy gets stronger and stronger.
NO RECESSION IN THE U.S. IN THE FORESEEABLE FUTURE
Last week, the extremely conservative Wall Street Journal admitted that a recession is not on the horizon:, “Steady Growth, Moderating Inflation Improve Odds of Extended Expansion.”
America’s jobs market is shattering records. 13.2 million jobs have been created under President Biden. Unemployment is at 3.6%.
Even Wall Street says that Bidenomics has driven an unexpected surge in the U.S. economy. Major banks like Morgan Stanley now estimate accelerating GDPgrowth.
Under Biden, government spending is seeding a boom in large-scale infrastructure and manufacturing construction. That means good jobs for middle-class workers.
The U.S. economic recovery – from the pandemic, supply chain issues, and Ukraine – is the fastest among advanced economies.
In comparison, China’s economy is faltering, with factory activity contracting and retail demand falling.
And the experts are finally saying: The U.S. is Not Heading Toward a Recession.
Deirdre Purdy, Chairperson, Calhoun County Democratic Executive Committee
This is funnier than The Onion and the Babylon Bee combined. Great comedy!!!
Its the Onion and Babylon Bee combined!!!
What great humor!!!!