The U.S. growth domestic product (GDP) report published on Thursday shows that the nation’s economy contracted for the second consecutive quarter this spring, which meets the technical criteria for a recession.
According to the U.S. Department of Commerce’s newly released economic figures, the GDP shrank by 0.9% from April through June.
Even amid soaring gas prices and rising inflation, President Joe Biden for weeks had downplayed concerns that the U.S. economy could enter a recession. Additionally, to the ire of many market economists, the White House has taken exception to what officially constitutes a recession.
In a prepared statement issued on Thursday, the president continued to maintain that the nation’s economy was not in recession.
“Coming off of last year’s historic economic growth – and regaining all the private sector jobs lost during the pandemic crisis – it’s no surprise that the economy is slowing down as the Federal Reserve acts to bring down inflation,” stated Biden. “But even as we face historic global challenges, we are on the right path and we will come through this transition stronger and more secure.”
In reaction to the GDP report, a number of Alabama Republican elected officials took aim at the Biden administration over its progressive spending agenda.
Gov. Kay Ivey stated her intentions of ensuring the Yellowhammer State’s economy remained “resilient” in the face of national economic uncertainty.
“America is in recession. Inflation is soaring, gas prices are up over 50% in the last year, interest rates are through the roof and government spending is out of control,” advised the governor in a statement to Yellowhammer News. “Now, as of today, the United States just posted two consecutive quarters of negative GDP growth – this is economists’ traditional definition of a recession.”
“Poor economic policy has dire consequences, and no matter how they want to try to spin it, the truth is that Americans are hurting,” added Ivey. “Even so, Alabama’s economy remains resilient, and I will continue to do all that I can to help Alabamians find relief, while being measured, not reckless as this Administration has been.”
Regardless of what the Biden administration deems to be a recession, U.S. Sen. Richard Shelby (R-Tuscaloosa) and U.S. Rep. Jerry Carl (R-Mobile) declared that the numbers released in the GDP report could not be disputed.
Our economy shrank for a second straight quarter. Couple that with 40-year high inflation levels, and what are we left with? A recession. President Biden doesn't want to admit it, but you can't argue with the facts. https://t.co/a90arOtaW5
— Richard Shelby (@SenShelby) July 28, 2022
We are headed into a recession, despite the Biden admin's attempts to change the definition of the word. https://t.co/CmE7KIXURN
— Rep. Jerry Carl (@RepJerryCarl) July 28, 2022
U.S. Rep. Mike Rogers (R-Saks) lamented Democratic congressional leadership’s “out-of-control socialist spending” policies, which he indicated had exacerbated economic hardship.
“Today’s news is proof that Joe Biden and his administration lied to the American people about the risks of a recession,” proclaimed Rogers. “On day one of his administration, Biden put the American people last by dismantling President Trump’s successful economic policies.”
“Under Biden, Americans have been hit with record-high inflation, sky-high gas prices, and now a recession,” added the congressman. “Biden, Pelosi, and Schumer have only worsened the economic crisis facing Americans with their out-of-control socialist spending and anti-American energy policies. Biden can’t lie his way out of this – we need to get our economy back on track.”
U.S. Rep. Robert Aderholt (R-Haleyville) asserted that Americans “aren’t buying” the Biden administration’s narrative that the economy was not in a recession.
“We have now had two consecutive quarters of negative growth, the very definition of a recession,” noted Aderholt. “The Biden Recession we all knew his economic policies would create, is officially here. The White House and the national news media are trying to spin this as if it’s not a real recession. But the American people aren’t buying it.”
U.S. Rep. Gary Palmer (R-Hoover), chair of the House Republican Policy Committee, slammed Senate Democrats’ $700 billion spending package, which includes a litany of progressive measures.
And yet, Washington Democrats are pursuing a new $700 billon dollar partisan spending bill that will further damage our economy. https://t.co/M9ubxRhdB4
— Gary Palmer (@USRepGaryPalmer) July 28, 2022
U.S. Rep. Barry Moore (R-Enterprise) said that congressional Democrats were “doubling down on dumb” in their attempt to pass an additional costly spending measure.
“No blame game, moving goalposts, or dishonest justifications from this administration and their media allies will fool American families – we are in a full-blown recession that is wiping out the unprecedented economic gains of the Trump administration,” declared Moore. “Unfortunately, Democrats are doubling down on dumb this week with their reconciliation bill that expands their own power through more federal government overspending and Green New Deal policies that leave us more beholden to overseas adversaries.”
“Joe Biden, Nancy Pelosi, and all the Washington Democrats who vote in lockstep with them are to blame for this recession, and the pain won’t end for American families until Washington has new leadership that serves Americans and not itself,” concluded the congressman.
Dylan Smith is a staff writer for Yellowhammer News. You can follow him on Twitter @DylanSmithAL
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