Is the United States still in the midst of a recession?
In the most recent quarter, the economy of the United States had a decrease of 0.9%.
The contraction of the GDP this quarter brings the total number of consecutive quarters to two. GDP, also known as a gross domestic product, had a drop of 1.6% on an annual basis during the first quarter.
It is common to practice to define a dip as the occurrence of two quarters in a row of low growth; however, this is not the official definition. When a recession hits the economy of the United States, the National Bureau of Economic Research, which is an entity that does not take political sides, makes the determination.
Can The Creation Of Jobs Stop The Recession?
This conclusion is done by a committee at the NBER that consists of eight economists, and the calculation takes into account a great deal of information.
As evidence of the robust state of the economy, Vice President Biden mentioned the unprecedented expansion of the workforce and the record levels of investment from overseas businesses. Biden concluded that “it does not sound to me like a recession.”
In a recent appearance on NBC’s Meet the Press, Treasury Secretary Janet Yellen mentioned that even though 2 sequential quarters of negative growth are often regarded as a drop in economic activity, the current state of the economy has its own set of challenges.
She stated that a recession was not occurring because the economy was producing approximately 400,000 new jobs each month.
Despite this, the state of the economy has worsened in virtually every conceivable aspect.
According to the GDP data, firms have reduced their workforces. Due to the Federal Reserve’s decision to raise interest rates, it is without a doubt that the cost of borrowing money has increased. Therefore, there is less money available for investment. The primary concern is whether or not this will begin to hinder the growth of job opportunities.