Joe Biden’s economy is unraveling.
But now, things just went from bad to worse.
And it’s all because of one shocking report that showed Biden’s policies are shrinking America’s economy.
Joe Biden is on track to have one of the worst economic records of any President in modern American history.
Not only is the country on the verge of a recession, but with most stock indexes down well over 10-20% this year alone, the market itself has entered Bear territory.
Even worse, the sale of new homes is plummeting to levels that hasn’t been seen since April 2020.
And through all of this, inflation is still hovering well over 8%, and in some cases, things are getting worse with time.
All of these figures show that Biden’s economic policies have been a disaster and now, a new shocking report shows that the American economy is now shrinking.
CNBC reports, “The U.S. economic contraction to start the year was worse than expected as weak business and private investment failed to offset strong consumer spending, the Commerce Department reported Thursday.
First-quarter GDP declined at a 1.5% annual pace, according to the second estimate from the Bureau of Economic Analysis. That was worse than the 1.3% Dow Jones estimate and a writedown from the initially reported 1.4%.”
This news makes it clear that the United States is heading for a major economic correction, and possibly even a recession.
With the economy shrinking even after failing to fully recover from the March and April 2020 crashes brought on from global lockdowns at the beginning of Covid, the United States is now on the brink of an economic correction that could spiral into a recession.
The only question now is, how bad will it end up being?
“Downward revisions for both private inventory and residential investment offset an upward change in consumer spending. A swelling trade deficit also subtracted from the GDP total,” CNBC reported.
“The pullback in GDP represented the worst quarter since the pandemic-scarred Q2 of 2020 in which the U.S. fell into a recession spurred by a government-imposed economic shutdown to battle Covid-19. GDP plummeted 31.2% in that quarter.”
With the November 2022 midterms also just around the corner, it remains to be seen how the economic slowdown could affect the upcoming elections, or whether or not this slowdown could turn into a recession that could last until 2024.
Some economists warn that a recession could be on the horizon as the Federal Reserve attempts to undo much of the damage they inflicted when it came to inflating the “Everything Bubble” in the first place.
And one of the signs of that bubble beginning to pop could be a dip in GDP growth.
Currently, the Federal Reserve predicts that GDP will grow in the 2nd quarter, but some branches of the Fed have also begun lowering their expectations. Should the economy take another dive this coming quarter, that could mark the official start of a recession.