In a conversation on Monday’s CNN NewsroomAna Cabrera as host, Catherine Rampell from Washington Post Opinion refused to view inflation or the recession negatively. According to its official definition, it was not even possible for them to admit that we might be in recession.
“On the one hand, you have consumers saying this economy is really lousy, that they’re unhappy, that inflation is very painful. On the other hand, they’re still spending like crazy,” said Rampell, trying to make higher spending from inflation helpful for the economy.
The fact is people are actually paying more for their needs, but Rampell and other leftist media promote the idea that people spend more simply because they wish to.
Experts predict a recession soon. The report will be available on Thursday, July 28, and many left-leaning people seem blind to these facts.
As Cabrera asked Rampell about the nearing recession, Rampell was quick to make a false claim about the widely accepted definition: “A lot of people think, oh, if you have two consecutive quarters of GDP declines, that in and of itself is a recession. No, that’s not the definition.”
This seems to have the classic definition of a recession, but this flagrant disregard comes at an appropriate time for the Biden Administration. A recent blog published by NewsBusters cited a new White House document announcing the move from the language of ‘two consecutive quarters of GDP lowering;” thus, helping the administration.
In the words of Rampell, in order for the United States to recognize that it is in a recession, “you would probably have to see job losses… or at the very least, unemployment rates going up.” The current unemployment rate is 3.6 percent nationally.
She continued on to empathize by saying, “but just imagine how much unhappier they will be if they’re dealing with inflation and job loss and all of the other economic pain associated with all of that.”
Recent Ludwig Institute data suggests that “the true rate of unemployment is much higher in many places than national or local figures show.”
While the media may be boasting about the lower unemployment rate, they fail to take into consideration that the “functionally unemployed,” people who don’t work but are looking, or a part-time job and wish to have a full-time job, or even those who make below the national poverty line. According to the media, those 3.6 percent that they love actually represents 23.1 percent in America’s labor force at April 2022.
Stating that the Fed’s job is “so difficult” right now, Rampell seemed to at least somewhat recognize the state that the nation’s economy is in currently though there seems to be a disregard for anything except clinging to a leftist narrative.
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To view the full transcript, click “expand”.
CNN Newsroom: Ana Cabrera
07/25/22
Eastern, 1:20:49(…)
ANA CABRERA – I would like to contribute to the discussion now CNN Economics and Political Commentator Catherine Rampell. Catherine, it is being described as an economic hurricane that could hit the region this week. So, keeping with the metaphor: What do you think will be coming? Is it a cat 1 or cat 5 storm?
CATHREINE RAMPELL : Oh, I wish. Problem is that the economy sends so many mixed signals at this time. We’ve already discussed some of these. It is possible that your GDP could shrink, possibly two quarters consecutively. This week, we’ll know. On the other hand, employers are still hiring, they’re still hiring tons and tons of people. Consumers say that the economy is terrible, they are unhappy and that inflation is extremely painful. However, consumers are still spending crazy.
It is difficult, therefore, to discern between all the noise and determine how bad and in which direction the economy is heading. Right? Are we still seeing the heat as predicted? Are we in recession or are there signs that the economy is already heading towards a recession? And that’s part of the reason the Fed’s job is so difficult right now. All the mixed signals.
(…)
Eastern: 1:22:57
CABRERA: Catherine, does the worker still hold the power versus the employer right now?
RAMPELL: This depends on the way you measure it. These are not satisfactory answers, I am sorry. However, when you take a look at their actual paychecks, it is clear that they are increasing. The dollar amounts are increasing year over year. But, the dollars they do make don’t go as far. While they can get higher salaries, their pay is not in line with the rising cost of living.
Their incomes are falling in real terms as well as inflation adjusted terms. That’s why people feel so frustrated right now. Yes, there are many jobs. You can also get a raise. How much is that raise worth when everyone has to buy more?
CABRERA : When we hear the term recession and we cringe, embrace ourselves and feel sorry for ourselves, Catherine, where or how do we Americans feel the most?
RAMPELL, There is an independent panel that decides if we’re in recession. They look at many indicators. Many people believe that a recession is defined by two consecutive quarters in which the GDP has declined. This is not what the definition means. For example, you would have to see job loss or, at minimum, rising unemployment rates. Most likely, we would observe, yes, that incomes dropping and production falling. GDP going down. It would be seen across the entire economy.
This could be a much more dire situation than the current one. We’ve already mentioned that consumers are unhappy about economic conditions, and this is largely due to inflation.
CABRERA: Right.
RAMPELL – But imagine how unhappy they will feel if they are dealing with inflation, job loss, and all the economic pain that goes with it.
(…)
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