The Job Creators Network, a small-business advocacy organization, on Monday accused the Biden administration of trying to redefine what classifies a recession, ahead of a predicted second quarter of negative GDP growth.
Job Creators Network CEO and President Alfredo Ortiz said the administration is "trying to move the recession goalposts from the traditional definition of two consecutive quarters of negative economic growth to pretend the economy is not in a recession."
The U.S. gross domestic product fell 1.6% during the first quarter of 2022, and the Atlanta Federal Reserve is predicting it will fall by 1.6% again this quarter, with the Q2 report scheduled to be released Thursday.
Ahead of the anticipated poor performance report, the Biden administration last week stressed the need for a "holistic look at the data" and claimed that six months of GDP decline are "unlikely" to indicate that the U.S. is in a recession.
"This is a desperate attempt to prevent Biden from being labeled a recession president, which would further hurt Democrats’ chances in the midterm elections this fall," Ortiz said. "But even following the administration’s request to take ‘a holistic look at the data’ still indicates the economy is in recession."
Inflation increased 9.1% in June, compared to 12 months earlier, a 40-year high, the Labor Department recently reported.
Although gas prices are down from the $5 a gallon peak, gas is still significantly more expensive under the Biden administration than any other previous president.
This year, the stock market had its worst first half of the year since 1970.