Risk of Recession and Disastrous Debt Levels: President Insists ‘Bidenomics’ IS Working Out for America

Despite the White House’s continuous claims that “Bidenomics” is working successfully to benefit the economy, fears remain high that a recession could be right around the corner due to a sharp rise in inflation, interest rates, and market uncertainty.

The Pandemic’s Impact

Image Credit: Shutterstock / Ahmet Misirligul

The strain on the U.S. economy began in 2020 due to a number of factors, especially when the COVID-19 pandemic prompted government lockdowns and mandates.

The U.S. Congress spent trillions of dollars on keeping the economy and stock market afloat.

Unprecedented Money Creation

Image Credit: Shutterstock / Paul Brady Photography

Additionally, policies set by the Federal Reserve led to money creation at unprecedented levels.

Government Spending and Inflation

Image Credit: Shutterstock / Viacheslav Lopatin

Subcommittee Chair Rep. Brad Wenstrup (R-Ohio) claimed that the “massive growth in government spending” — referring to the $4.6 trillion spent on the U.S. Covid-19 response — is ultimately what caused the inflation the U.S. is seeing today.

Low Interest Rates

Image Credit: Shutterstock / Tama2u

Meanwhile, the Federal Reserve kept interest rates extremely low during the pandemic, despite economists warning that this, coupled with an increase in government spending, could later trigger a recession.

Efforts to Curb Inflation

Image Credit: Shutterstock / Cinemato

In 2022, the Federal Reserve also began raising interest rates again in order to undo the damage caused by the pandemic and to tame inflation.

Persistent Inflation

 

Image Credit: Shutterstock / Sauko Andrei

In terms of monetary policy, inflation reached a 40-year-high in mid-2022. As of September 2023, it remains above the Federal Reserve’s target of 2%.

Inflation Impact on Consumer Goods

Image Credit: Shutterstock / Maxx-Studio

The inflation rate has now dropped, but not enough to “deflate” prices. Consumer goods, gas, rent, and housing prices remain much higher than before the pandemic.

Falling Money Supply

Image Credit: Shutterstock / evan_huang

Additionally, the U.S. money supply has fallen at an unprecedented rate, which is another potential issue for curbing inflation.

Impact on American Families

Image Credit: Shutterstock / michaeljung

The lower money supply prompted by the Fed’s policies and the Biden Administration’s spending has significantly strained American families.

More Americans are reportedly dipping into their savings and depending on credit cards to cover basic living expenses, leading to consumer debt reaching new heights.

Government Spending Dilemma

Image Credit: Shutterstock / Consolidated News Photos

Meanwhile, Congress and the Biden Administration are attempting to reach a deal on government spending.

An agreement will need to be reached soon for there to be any improvement in prices and inflation. Otherwise, the U.S. could be headed for another massive economic crisis.

Reasons for Recession 

Image Credit: Shutterstock / Kmpzzz

A recession is still likely—and coming soon. Fortune laid out six reasons why.

Historical Patterns

Image Credit: Shutterstock / Glynnis Jones

When everyone expects a soft landing, brace for impact. That’s the lesson of recent economic history — and it’s an uncomfortable one for the U.S. right now.

Fed’s Role and Interest Rates

Image Credit: Shutterstock / Morrowind

One reason is simply the way forecasting works. It typically assumes that what happens next in the economy will be some kind of extension of what’s already happened — a linear process, in the jargon.

But recessions are non-linear events. The human mind isn’t good at thinking about them.

Additional Factors

Image Credit: Shutterstock / iQoncept

The U.S. economy faces numerous challenges, from unwinding pandemic savings to soaring interest rates and oil prices.

These factors, combined with the uncertainty surrounding government spending and other global economic issues, paint a worrying picture.

While a soft landing remains possible, history and data suggest that a recession might lurk just around the corner, and the nation should prepare accordingly.

Bracing for It

Image Credit: Shutterstock / manpeppe

Many Americans have been taking action in an effort to ‘brace themselves’ for a recession that could be worse than the Great Depression.

Ukraine Gains Momentum on Regaining Control After Russia’s Former General Dies in Plane Crash

Image Credit: Shutterstock / JMMJ

After Russia continues its 16-month-long invasion of Ukraine, a surge of political upheaval has unfolded in Moscow, coinciding with Kyiv’s efforts to regain control of its territories. Ukraine Gains Momentum on Regaining Control After Russia’s Former General Dies in Plane Crash

China Invest $1 Billion in Land Next to US Air Force Base Through Intermediary Company Sparking National Security Concerns

Image Credit: Shutterstock / Bill Chizek

Recent reports have unveiled strange information about a nearly $1 billion investment in land purchases by a secretive company close to a California Air Force base, sparking concerns regarding national security. China Invest $1 Billion in Land Next to US Air Force Base Through Intermediary Company Sparking National Security Concerns

Absolutely No Winners: Migrants Shocked by the Harsh Reality of Life in New York Yet It’s Costing the City $12 Billion

Image Credit: Shutterstock / Arnett Murry

Thousands of migrants have arrived in New York City, but encounter a reality that often differs from their expectations as they navigate a broken system and seek stability in a new land. Absolutely No Winners: Migrants Shocked by the Harsh Reality of Life in New York Yet It’s Costing the City $12 Billion

“Not Silenced” – Huge Backlash After Judge Rules Media to Destroy Electronic Data Going Against the First Amendment and Freedom of the Press

Image Credit: Shutterstock / sirtravelalot

In a recent decision, a judge has ruled that Kansas authorities must delete all electronic copies of a small newspaper’s files that were made during a police raid on its office and has people questioning the police department’s understanding of the First Amendment. “Not Silenced” – Huge Backlash After Judge Rules Media to Destroy Electronic Data Going Against the First Amendment and Freedom of the Press

Cancer-Causing Fuel Approved by Environmental Protection Agency Despite Risk Being a Million Times Above Acceptable Levels

Image Credit: Shutterstock / Ground Picture

EPA has been found to have made a controversial decision regarding boat fuel which can cause cancer. Cancer-Causing Fuel Approved by Environmental Protection Agency Despite Risk Being a Million Times Above Acceptable Levels

The post Risk of Recession and Disastrous Debt Levels: President Insists ‘Bidenomics’ IS Working Out for America first appeared on Back Edge News.

Image Credit: Shutterstock / Gints Ivuskans. The people shown in the images are for illustrative purposes only, not the actual people featured in the story.

+ posts

Leave a Comment