Column: America in recession | Oklahoma
For several months, Americans have become increasingly nervous that our country’s economy is heading into recession. Unfortunately, those fears became reality last week when the Bureau of Economic Analysis announced that gross domestic product (GDP) had shrunk for a second straight quarter, constituting an economic recession.
Although President Joe Biden continues to deny that our country has reached the point of an economic recession, he can’t hide from the numbers. There is no doubt that our economic crisis is out of control. The US economy shrank nearly 1% in the second quarter of this year and 1.6% in the first quarter. Americans are paying more than ever for almost everything, especially gas and groceries. And some companies are hit so hard by high production processes that they implement an inflation tax or inflation fee.
Moreover, as wages for American workers continue to fall and prices continue to skyrocket, Americans are essentially working for just over a month without compensation due to inflation. This equates to an annual income drop of about $3,400 for the average worker and about $6,800 for families in which both parents work. These pay cuts for families effectively erased the money Americans received from the three stimulus checks during the pandemic from March 2020 to March 2021.
Sadly, instead of admitting he was wrong that inflation was temporary, the President and the Democrats unveiled their bad second Build Back Better bill that will once again increase spending and tax more taxes on the American people. Misleadingly named the Cut Inflation Act of 2022, this bill would actually do the exact opposite of its name. Indeed, these exact spending and policies are what got us into this mess before. While Americans are struggling to afford to feed their families and fill their gas tanks to keep it going, this is unconscionable.
I did not lose sight that the Federal Reserve raised interest rates for the second time in an attempt to stabilize the price spike, but since it was the first time, this decision was too late. Our nation has already reached the point of recession, and instead of shifting gears on policies that have already been proven to cause this crisis, Democrats are stepping up. Americans are in desperate need of relief, and what is their plan? To put more on our nation’s credit card and get the most out of your paychecks with taxes.
It is abundantly clear that President Biden and the Democrats have no plan or even the will to deal with our country’s economic crisis. As the majority of Americans begin to live paycheck to paycheck, it is high time to grasp reality and help the American people.
To contact Congressman Cole, call 202-225-6165 or 580-357-2131.