White House Changing Definition of Recession, Will Take New ‘Holistic’ Look at the Situation

With The Washington Post blaring that “Big Tech is bracing for a possible recession,” the Biden White House is redefining the word.

A recession is traditionally defined as two consecutive quarters in which the nation’s Gross Domestic Product shrinks. A new report Thursday will assess the results of the second quarter. Shrinkage took place in the first quarter, and with inflation running at 9.1 percent, there’s not a lot of hope for economic good news.

As noted by Business Insider, economists Bloomberg surveyed believe growth will be a paltry 0.9 percent, but the Federal Reserve Bank of Atlanta’s GDPNow model pegs shrinkage at 1.6 percent.

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But consumer pain does not make a recession, according to a White House handout,

“What is 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. Instead, both official determinations of recessions and economists’ assessment of economic activity are based on a holistic look at the data,” the handout said, listing labor market, consumer and business spending, industrial production and income data will all be mined.

The White then offered a prediction: “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.” – READ MORE