Between a labor shortage, inflation, high gas prices, and the looming supply chain crisis, the Biden economy has little to boast about.
And according to two experts, things are actually even worse. They say that the economy is already in recession, but this recession could be as bad as 2008.
According to a study by David Blanchflower of Dartmouth College and Alex Bryson of University College London, every economic slump since the 1980s has been preceded by a 10-point drop in consumer indices from the Conference Board and the University of Michigan.
Prior to the 2008 financial crisis, the Conference Board measured a 20.5-point drop and the University of Michigan measured a 21.4 point drop. In September 2021, they recorded a 25.3 point drop and an 18.4 drop, respectively.
According to their analysis, the current recession hasn’t been widely noticed because typical indicators of a recession have been skewed by government countermeasures. Fears of COVID have also played a role.
“The economic situation in 2021 is exceptional, however, since unprecedented direct government intervention in the labor market through furlough-type arrangements has enabled employment rates and unemployment rates to recover quickly from the huge downturn in 2020,” their study explains. “But the involvement of the US in propping up the labor market has meant it is hard to see exactly what is going on.”
“It seems to us that there is every likelihood that the United States entered recession at the end of 2021,” they conclude.
Well, congratulations, Biden—this should help your approval ratings.