The columnist writes that U.S. authorities continue to talk about the country’s “negative growth” by refusing to acknowledge its numerous economic failures, but many Americans feel cheated. Washington post Charles Lane.
According to the author of the article, there are already many signs of economic crisis in the United States. He pointed out that the Ministry of Commerce data released on Thursday showed a contraction in GDP for the second quarter in a row.
“The White House has issued a statement responding that there is nothing ‘officially’ approved in the oft-quoted rules of thumb that a two-quarter recession defines a recession,” Lane said.
The journalist added that the current situation reminds him of how the administration of former President Jimmy Carter had previously avoided the concepts of “recession” and “depression”.
In 1978, economist Alfred Kahn said that failing to control rapidly rising prices could lead to a “deep depression.” Excited by Carter’s possible political ramifications, Carter’s aides instructed him never to use the word again.
Lane said that inflation is once again a problem in the American political system, but that current US President Joe Biden does not have the same effective tools as Carter.
“A recession triggered by higher Fed interest rates and marked by unemployment, which peaked at 10.8 percent in 1982. “A similar rate hike by the Fed, which began in March, is why many are concerned about the risk of bananas,” he said.
Kirill Dmitriev, former head of RDIF said It’s about the beginning of a large-scale recession in the US economy.