Since shortly after the COVID-19 pandemic began in 2020, it became evident that the economy of the United States was suffering. At the time, this was due to massive unemployment as companies shuttered their doors due to lockdowns and limited the number of people being served at one time.
With people getting paid less or not at all, companies began to suffer and close their doors for good. As a result, products failed to be made, and our supply chains got bogged down and, in some places, stopped completely.
Now, as you know, our economy didn’t stay down long. As the pandemic waned and companies began reopening their doors, local and national economic growth was seen. People were working again, albeit from home, and it seemed as if “normal” had returned, at least partly.
However, it was then that our nation also saw a change in leadership. Democratic President Joe Biden took over the White House, promising to return our country to its former glory and strength.
But decisions made beginning on day one of him being in office haven’t exactly done that, has it?
As you know, gas prices are soaring, rent and housing costs are way up, as are interest rates, and inflation has become a very real thing.
Yet, it seems that all the current White House is interested in is whether or not we are in a recession.
And for that, Bank of America CEO Brian Moynihan isn’t very pleased with Biden or his administration.
As one of the world’s foremost financial industry leaders, Moynihan says semantics or naming the current state of affairs isn’t really what matters. Instead, the important part is how the current economy affects the people in the United States.
“Recession is a word. Whether we are in a recession or not is really not the important thing. It’s what it feels like for the people going through this,” he told the Associated Press.
Instead of worrying about what to call our economy, Moynihan thinks the Biden administration should be fixated on finding real solutions to those problems.
You know, problems like the fact that data shows the GDP dropping for the second quarter in a row, which, by the way, is basically the definition of a recession. Of course, Biden hasn’t been willing to accept that. On July 28, he actually even made a statement about how we are not in a recession.
But to accept such would not only be admitting to defeat and that he’s failed to keep his campaign promises to America, but it would also be a death sentence for the Democratic Party.
As we draw closer and closer to the November 2 congressional midterms, it’s become apparent that the party needs all the help they can get. Thanks to rising inflation, high gas prices, poor military decisions, the rise of socialism, and crime rates that just won’t go down, Americans are less and less inclined to vote for a party that seems ok with all of that.
It is expected that the GOP will give the political left a very sound thrashing come November, possibly overtaking the majority in both the US Senate and House of Representatives.
So, for Biden to admit that he has led the nation into a recession would only hurt their slim chances of success.
But to fixate on just the naming or not naming of it isn’t the answer either.
Despite strong monthly job reports, inflation hit a rate of 9.1 percent in June, the highest since 1981. This has caused consumer confidence to crumble.
Moynihan says this is due to higher-than-average gas and rent prices, two of the nations most affecting factors. In June, when inflation was at its highest, gas prices hit a whopping national average of over $5 a gallon, according to data from AAA.
Now, those prices are coming down. Last week’s national average was around $4 or less, which has helped a bit.
However, the same cannot be said of rent prices. And this is what Moynihan is far more concerned about.
As the Bank of America CEO told the AP, “rent can end up taking 40% of these households’ income.” And right now, he noted that rent is up some “10, 12, 15 percent.”
Then again, Moynihan believes that most Americans will financially survive this time of economic uncertainty – that is, as long as Biden stays out of the way of decreasing inflation and gas prices.
