The results of Biden’s poor economic performance have started coming in.
The latest report of the Commerce Department shows the American economy shrunk by 1.4 percent in the first quarter of the ongoing year.
America’s GDP Shrunk by 1.4 Percent Under Biden
This negative growth rate of the American economy shocked many pundits who claimed at least a one percent rise in the GDP in the current cycle.
These economic bombshells were released by the Commerce Department report on Thursday, which goes against all the claims made by Biden.
For a long time, the president touted his economic success by showing the employment numbers created under his presidency.
BREAKING: GDP plummeted to -1.4% in the first quarter. NEGATIVE 1.4%!
Biden and the Dems are driving the economy off a cliff.
— Monica Crowley (@MonicaCrowley) April 28, 2022
However, this time, it is estimated all the job gains were due to the reopening of the economy, which was bound to happen with the declining impacts of the pandemic.
The chief economist at State Street Global Advisors, Simona Mocuta, noted things are changing so rapidly that they are unlikely to show appreciable results in the future.
During the first quarter, inflation increased significantly and touched a 41-year record high, amid the straining global supply chain and rising oil prices.
Not only this, but government spending introduced on the watch of Biden also played its part in surging prices in the country.
Biden’s Leftist Policies Are Increasing Trade Deficit
Biden’s reliance on increasing taxation on American business also contributed to the worsening economy, as this has led to more imports, resulting in a trade deficit.
According to the report, the goods trade deficit reached an all-time high of $125.3 billion, as it increased by 17.8 percent in the first quarter of the ongoing fiscal year.
Likewise, the imports of industrial goods and petroleum products also contributed to the widening trade gap, which is the primary reason for the downfall of the GDP.
This comes at a time when businesses were enjoying favorable interest rates, which were supposed to grow the GDP.
However, this time, as the Federal Reserve is aiming to increase the interest rate multiple times in the remaining year, business activity is expected to reduce significantly, which can further nosedive the economy.
The president still believes he is doing a good job driving the American economy in a positive direction.
He suggested America is seeing “enormous growth,” which is happening due to the reducing pandemic restrictions.
When Biden was pressed, he ended up acknowledging an economic recession may come next year.
Under Biden, we are Building Back BROKE!
If record-high inflation and gas prices weren’t bad enough, our gross domestic product (GDP) has declined by 1.4% in the first quarter.
What’s the Democrats’ solution? Spend more money and wipe away billions in student loan debt. 🤯 https://t.co/xojThmbbPb
— Congressman Byron Donalds (@RepDonaldsPress) April 28, 2022
These comments of the president are in contrast to what Labor Secretary Marty Walsh believes. Walsh noted it is very “likely” that America is heading towards a recession.
This report presents new challenges to the Democrat-led government, which was already facing backlash, due to the rising inflation.
Now, as the country moves toward recession, more businesses are likely to suffer, the cost of which will be transferred to American consumers.