WATCH: White House Officials Spinning Definition of Economic Recession Met With Skepticism

 

White House economic officials are taking to the media to give the “technical” definition of a recession ahead of a potential second quarter of negative GDP growth.

In a blog posted by the White House last week, a recession was defined as a “significant decline in economic activity” that lasts “more than a few months.”

From the White House:

The National Bureau of Economic Research (NBER) Business Cycle Dating Committee—the official recession scorekeeper—defines a recession as “a significant decline in economic activity that is spread across the economy and that lasts more than a few months.”

Treasury Secretary Janet Yellen and White House economic advisors used this definition to wave away media questions about record inflation and potential further negative news on the state of the economy.

On NBC News’ Meet the Press on Sunday, Yellen said the economy is “slowing down,” but not in a recession.

This is not an economy that’s in recession, but we’re in a period of transition in which growth is slowing. And that’s necessary and appropriate, and we need to be growing at a steady and sustainable pace. So there is a slowdown, and businesses can see that and that’s appropriate, given that people now have jobs, and we have a strong labor market.

She added, “A recession is a broad-based contraction that affects many sectors of the economy. We just don’t have that. I would say that we’re seeing a slowdown.”

White House economic advisors Jared Bernstein and Brian Deese similarly pushed back against recession fears with the White House’s “technical” definition of the term.

CNN’s John Berman said many economists define recession as “two quarters of negative growth in a row,” something which Deese pushed back on in a Monday exchange.

“In terms of the technical definition, it’s not a recession,” Deese said. “The technical definition considers a much broader spectrum of data points, but in practical terms, what matters to the American people is whether they have a little economic breathing room, they have more job opportunities, their wages are going up. That has been Joe Biden’s focus since coming into office.”

In another CNN interview, Bernstein also tried taking a stab at the technical definition of recession to convince everyone that no such thing is on the horizon, pushing back against defining a recession as two straight negative quarters of GDP growth.

“It’s not a definition we’re taking. It’s the official Business Cycle Dating Committee. They’re the ones who declare a recession. Not the White House,” Bernstein said.

In Yellen’s interview with NBC News’ Chuck Todd, the anchor pushed back hardest against this “technical” definition, accusing the Treasury Secretary of “splitting hairs.”

“I mean, if the technical definition is two quarters of contraction, you’re saying that’s not a recession,” he said.

“That’s not the technical definition,” Yellen countered. “There’s an organization called the National Bureau of Economic Research that looks at a broad range of data in deciding whether or not there is a recession, and most of the data that they look at right now continues to be strong. I would be amazed if the NBER would declare this period to be a recession, even if it happens to have two quarters of negative growth.”

Watch above via NBC News.

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Zachary Leeman covered pop culture and politics at outlets such as Breitbart, LifeZette, BizPac Review, HollywoodinToto, and others. He is the author of the novel Nigh. He joined Mediaite in 2022.