News broke that the GDP had negative growth for the second consecutive quarter. Traditionally economists have defined that as a recession. However, the Biden Administration has been claiming that it is not indicative of a recession. Fox Business Chief National Correspondent, Connell McShane weighed in on this debate. McShane says that the official arbiter of recessions is a group of economists called The National Bureau of Economic Research. This group looks at several factors such as GDP, retail sales, income, and the job market, and then determines after the fact it was or was not a recession.
“I think no matter how you label it, people know the economy is struggling,” said McShane.
McShane claims the Biden Administration is fighting a war of semantics. He pointed out that this economy is struggling mostly due to inflation. People are spending more on food and daily needs which leaves less expendable income for luxury items. McShane had much more to say on this topic which you can find in the podcast or the audio above.
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