America in recession

by Tom Cole

For several months, Americans have grown increasingly nervous that our nation’s economy was heading toward recession. Unfortunately, those fears became a reality last week when the Bureau of Economic Analysis reported that Gross Domestic Product (GDP) declined for a second consecutive quarter, which constitutes an economic recession.

Although President Joe Biden continues to deny our nation has reached the point of an economic recession, he can’t hide from the numbers. There is no question that our economic crisis is out of control. The U.S. economy shrank nearly 1 percent in the second quarter of this year and by 1.6 percent in the first quarter. Americans are paying more than ever for nearly everything, especially gas and groceries. And some businesses are being hit so hard by high producer processes that they are implementing an inflation tax or inflation fee.

Additionally, while American workers’ wages continue to decline and prices continue to skyrocket, Americans are essentially working for a little over a month without compensation due to inflation. This amounts to a yearly income decrease of roughly $3,400 for the average worker and roughly $6,800 for families in which both parents work. These pay cuts for families have effectively erased the money Americans received from the three stimulus checks during the pandemic from March 2020 to March 2021. 

Unfortunately, instead of admitting he was wrong about inflation being temporary, the president and Democrats have unveiled their second bad Build Back Better bill that will once again drive up spending and impose more taxes on the American people. Deceptively named the Inflation Reduction Act of 2022, this bill would actually do the complete opposite of its name. Indeed, this spending and these exact policies are what has already gotten us into this mess. As Americans struggle to afford to feed their families and fill up their gas tanks to make it to work, this is unconscionable.

It is not lost on me that the Federal Reserve increased interest rates for a second time to try to stabilize skyrocketing prices, but just as it was the first time, this move was too late. Our nation has already reached the point of recession, and instead of shifting gears on policies that have already proven to cause this crisis, Democrats are doubling down. Americans are in desperate need of relief, and what is their plan? To put more on our nation’s credit card and take more out of your paychecks with taxes.

It is abundantly clear that President Biden and Democrats have no plan or even willingness to address our country’s economic crisis. As the majority of Americans begin to live paycheck to paycheck, it is past time to get a grip on reality and help the American people.