The lefty argument has been that the economic problems we’re facing are a global, not a national phenomenon. Gas prices, inflation and economic numbers were bad all around. And then we got the expected bad news.
The U.S. economy shrank for a second quarter in a row—a common definition of recession—as the housing market buckled under rising interest rates and high inflation took steam out of business and consumer spending. Gross domestic product, a broad measure of the goods and services produced across the economy, fell at an inflation and seasonally adjusted annual rate of 0.9% in the second quarter, the Commerce Department said Thursday. That followed a 1.6% pace of contraction in the first three months of 2022.
While the Democrats and their media rushed to redefine recession, the news out of Europe is different.
Europe’s economy grew unexpectedly in the second quarter of this year, allaying concerns — for now — that the continent may have slid into a recession.
The European Union’s economy grew at a seasonally adjusted 4% last quarter when compared to the same quarter a year ago and 0.6% compared to the first quarter, according to a preliminary estimate published Friday by the EU statistics office. The 19 countries that use the euro as their currency — which account for nearly a fifth of the world’s economic output — grew a bit faster, at 4% and 0.7% respectively.
The Euros haven’t been as enthusiastic about hammering home interest rate hikes as the Fed. And the Fed’s overly aggressive and tone-deaf moves are likely to ultimately make matters worse.
But this also deprives Biden and his allies of their biggest talking point.
It’s not a worldwide phenomenon when our economy shrinks while Europe’s and Mexico’s grows.
Mexico’s economy continued its recovery in the second quarter, with activity expanding for a third consecutive period backed by gains in services, industrial output and agricultural production.
Gross domestic product, a measure of output in goods and services, rose 1% in seasonally adjusted terms from the first quarter, the National Statistics Institute said Friday.
“This is a better-than-expected result,” said Alonso Cervera, chief Latin America economist at Credit Suisse. “The Mexican economy was surprisingly resilient in the first half, particularly in light of U.S. GDP data in that period.”
Can we trade in Biden for his cut-rate Mexican replacement?
The UK economy grew 0.5%, Italy’s grew 1%, Singapore’s grew 4.8%, South Korea’s grew 2.9%, and Egypt’s 6.2%.
America’s economic misery isn’t a worldwide phenomenon, it’s a Biden phenomenon.