Today our local media and Republican leaders are harping on the Democratic state of economic recession, saying that the left is lying to us about the state of the economy.
Let’s look at this a bit closely.
Generally a recession is defined by a significant decline in economic activity that lasts for months or even years.
Specific definitions of recession and our present state:
A decrease in GDP:
Last available data: 2021. The U.S. experienced a full year of GDP growth at 5.90%.
Rising levels of unemployment:
Washington’s job market has triple the number of unfilled jobs it did pre-COVID-19. The biggest constraint on hiring is “the lack of available workers in virtually every industry and in every corner of the state. (The Columbian, Sept. 9)
Falling retail sales and contracting measures of income:
Latest data: In every quarter of 2021, U.S. corporations’ overall profit margin remained above 13%, a level reached during only one previous quarter in the past 70 years.
Meanwhile real wage growth decreased 2.6% from a year ago. (Fortune Magazine March 31)
Looks like our Republican friends are confusing the terms “recession” and “inflation.”
• Causes of inflation include:
• Robust spending by consumers.
• Supply disruptions at factories, ports and freight yards.
• Worker shortages. (Fortune June 26)
You can be the judge of what state our country is in and why that is.