As the official declaration of recession nears, the White House is conveniently playing games with the definition of a “recession.” They redefined it.
This is the new White House Council of Economic Advisors definition:
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. Instead, both official determinations of recessions and economists’ assessment of economic activity are based on a holistic look at the data—including the labor market, consumer and business spending, industrial production, and incomes. Based on these data, it is unlikely that the decline in GDP in the first quarter of this year—even if followed by another GDP decline in the second quarter—indicates a recession.
So, as you pay ridiculously high prices for fuel and gas, just remember it’s no longer a recession. The White House is ignoring the common standard for a “holistic view.”
They just came up with that. It was only saved by the Wayback Machine one time – yesterday.
So far, it looks and feels like a recession.
On July 19, the #GDPNow model nowcast of real GDP growth in Q22022 is -1.6%. https://t.co/T7FoDdgYos #ATLFedResearch
Download our EconomyNow app or go to our website for the latest GDPNow nowcast. https://t.co/NOSwMl7Jms pic.twitter.com/Fs2Qn8xT2J
— Atlanta Fed (@AtlantaFed) July 19, 2022
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