Senator Wicker says that changing the definition doesn’t change the pain.
On Thursday, the U.S. Department of Commerce will release its second-quarter gross domestic product (GDP) reading, a report that is expected to be bleak. In an effort to get ahead of the report’s findings, the White House is attempting to redefine what classifies as 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 president’s administration stated. In a document on the White House website, they claim that a recession can be determined based on “a holistic look at the data,” such as that shown in the labor market and consumer spending.
“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,” the White House said.
By the traditional definition, a recession occurs when a nation has two consecutive quarters of negative economic (GDP) growth.
As the Lord Leads, Pray with Us…
- For understanding for U.S. economic advisors as they provide recommendations to the president.
- For the president to seek God’s guidance regarding the state of the nation’s economy and evaluate the administration’s policies.
Sources: The White House, Just The News, Fox Business
