It wasn’t terribly reassuring. Biden then said the real answer to the nation’s economic problems is for Republicans on Capitol Hill to support raising taxes on rich corporations. Meanwhile, Biden is asking Congress to pass another of the giant spending measures that have contributed to inflation, which is, in turn, contributing to recession fears.
The question now is whether the factors that shrank the economy in the first quarter of this year will continue through the second quarter, creating a recession. Businesses built up inventories in the last quarter of 2021, then pulled back in 2022. Perhaps that will change. Exports declined — perhaps that will change, too. Consumer demand remains strong. And presidential leadership? While Biden seems committed to spending levels that feed inflation, he also seems, judging by his remarks above, a little confused about what to expect or what to do.
Join the Conversation
VIP members get the ability to comment on articles.