Gross domestic income revised lower, undermining WH recession claims, heritage expert says

Gross domestic income revised lower, undermining WH recession claims, heritage expert says

A data point used by the Biden administration as proof that the country is not in recession was revised this week in the latest batch of economic data released by the Commerce Department. And an expert tells Fox News Digital that’s further proof the country is in a recession.

The average of gross domestic product and gross domestic income in the second quarter was revised down by 0.4% growth to -0.3% after the GDI was revised down from 1.4% to 0 .1%, according to the numbers released by the Commerce Department this week.

The average of GDP and GDI, known as gross domestic production, in the first quarter was also revised into negative territory, the data showed.

The Treasury Department and some economists cited the growth in gross domestic income and the GDO figure in recent months as evidence that the economy is recovering strongly and as a counterbalance to the contraction in GDP.

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Joe Biden speaking in the White House dining room

President Biden speaks in the State Dining Room of the White House on March 6, 2021 in Washington. (AP Photo/Alex Brandon/AP Newsroom)

“Our broad and inclusive recovery has outpaced that of many other major economies,” Treasury Secretary Janet Yellen said. said earlier this month. “And measured by gross domestic income, our economy continues to grow and perform above levels that would have been predicted before the pandemic.”

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The Treasury Department suggested in a July blog post titled “The Data Underlying America’s Strong Economic Recovery” that the continued divergence between GDP and GDI is “an important piece of evidence that points to stronger growth for the US economy.”

The blog entry added that GDO “provides a rule of thumb for inferring the true rate of economic growth.”

Janet Yellen testifies before Congress

Treasury Department Secretary Janet Yellen testifies before the House Ways and Means Committee during a hearing on a fiscal year 2023 budget proposal on Capitol Hill in Washington on June 8, 2022. (AP Photo/Jose Luis Magana, File/AP Newsroom)

EJ Antoni, a regional economics researcher at the Heritage Foundation’s Data Analysis Center, told Fox News Digital that the revised numbers confirm the country is in a recession and destroy the Biden administration’s argument to the contrary.

“Basically the Biden administration, I think, was just looking for any type of positive news to grab to distract from the fact that we’re in a recession,” Antoni said. “So the unusually large disparity between GDP and RIB was what they grabbed hold of and of course now it’s coming back to bite them because it turns out the RIB was nowhere near as high as they thought so, nor for the second trimester and most of the first trimester.”

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Antoni added that the “obscure” data point was the “one thing” the Biden administration could “hang its hat on,” and he’s “strangely quiet” about it now that it’s “turned against them”.

“Put simply, the Biden administration has no more data points to hide behind – the recession is confirmed,” Antoni wrote in the Daily Signal this week.

Federal Reserve Jerome Powell in a suit w

Federal Reserve Chairman Jerome Powell addresses the Senate Banking, Housing and Urban Affairs Committee (AP Photo/Manuel Balce Ceneta/AP Newsroom)

The White House did not immediately respond to a Fox News Digital request for comment.

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GDP, the broadest measure of domestically produced goods and services, officially declined at an annualized rate of 1.6% in the three-month period from January to March and fell 0.6% between April and June, meeting the criteria of a called technical recession.

Fox News’ Megan Henney contributed to this report

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