Is the US economy decline?Biden, who has experienced a dozen times: This time is not like

Jimu Journalist Song Qingying

In the second quarter of the United States, the GDP (GDP) in the second quarter shrinks, and the US economy has fallen into a "technical decline". But Biden insisted: "In my opinion, this does not seem like a decline."

According to statistics, the United States has experienced 13 economic recessions since 1933. Born in 1942, in fact, his generation of Americans were very familiar with economic recession. In the most frequent period, the United States has a economic recession every few years.

Biden (Picture Source: Associated Press)

Biden: For me, this does not sound like an economic recession

On July 28, local time, data released by the US Department of Commerce showed that in the second quarter of this year, the actual GDP (GDP) of the United States (GDP) fell by 0.9%from the previous quarter. The pattern of 1.6%atrophy.

This also aroused arguments about whether the US economy decline. According to Reuters, according to this data, the US economy has met the standard definition of "technical recession".

The US economy contracted unexpectedly in the second quarter. Consumer expenditure growth was the slowest in two years, corporate expenditure decreased, and economic conditions were weak. These all light up the "recession" signal light.

A supermarket in Maryland, USA (Picture Source: Agence France -Presse)

However, the White House, economists, the Federal Reserve and White House said that due to the strong performance of consumer expenditures and the performance market, the US economy has not fallen into a decline. Biden claimed: "For me, this does not sound like an economic recession."

The National Economic Research Agency has not announced the decline of the US economy. The agency defines the decline as "the economic activity of the entire economy has declined significantly and lasts for more than several months, usually including production, employment, actual income and other indicators."

"There is no doubt that the domestic economy has signs of potential slowing down." The recession caused by interest rate hikes came in advance. "

According to the definition of the "Sam rules" of the Federal Reserve Economist Claudia Sam to determine the economic recession, there is no signs of recession in the United States at present. The rule pointed out that when the average unemployment rate of three months rose by 0.5 percentage points from the previous 12 months, the economy entered a decline. The U.S. unemployment rate has been below 4%since January this year, and is in a state of decline or stability.

According to the "Financial Times" reported in June, according to the report, nearly 70%of the major academic economists predict that the time for the US economy will really enter the decline in 2023.

Biden has experienced more than a dozen economic recessions in the United States

Although this time it is very controversial for the United States to fall into a recession, Americans are no stranger to economic recession. Social media has aroused the debate of U.S. netizens of all ages: which generation has suffered more losses in the past economic recession.

Finally, it was found that each generation has experienced economic recession, especially in the mid -1940s, the "baby tide" generation has experienced nearly a dozen times. Born in 1942, the experience of Biden is naturally more obvious.

According to Consumer News and Business Channel (CNBC), the US economy has experienced a total of 13 declines from the Great Depression to 2020 in 1933. In the 20 years after World War II, an economic recession occurred almost every 4 or 5 years.

The most dramatic is two recessions in the early 1980s. In the late 1970s, the inflation rate continued to rise, reaching a peak of 22%in 1980. Therefore, the Fed increases interest rates to prevent rising inflation, which has led to economic slowdown and leading to economic recession in 1980.

As a result, the United States had just stepped out of less than a year. In 1981, the Fed tried to inhibit inflation through stricter monetary policy. By 1983, these policies successfully reduced the inflation rate to about 4%, but the cost was the economic recession of 16 months. In addition, the GDP dropped by about 3%, and the unemployment rate soared to 10.8%.

New York Stock Exchange (Picture Source: The Conversation)

Since then, the frequency of economic decline in the United States seems to have decreased. In 1990, with the United States involved in the Iraq and Gulf War, an economic recession appeared. Ten years later, the United States ushered in a recession again when the economic bubble was burst in 2000.

The nearest economic recession has occurred in 2007. Large financial institutions such as Fanglima, Mideline, and Lehman brothers such as Fanglima, Mideline, and Lehman brothers closed down in 2008. The GDP fell 4.3%and the unemployment rate eventually reached 10%. The economic recession lasted for 18 months, and the U.S. government was forced to adopt a large -scale economic stimulus plan, including the financial industry, insurance and automobile companies provided US $ 700 billion in rescue, and another government stimulus plan with more than 800 billion US dollars.

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