{"id":1458224,"date":"2022-04-29T13:59:35","date_gmt":"2022-04-29T17:59:35","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1458224"},"modified":"2022-04-29T13:59:39","modified_gmt":"2022-04-29T17:59:39","slug":"democrats-2022-prospects-take-another-hit","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/democrats-2022-prospects-take-another-hit\/","title":{"rendered":"Democrats\u2019 2022 Prospects Take Another Hit"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">12<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fdemocrats-2022-prospects-take-another-hit%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1458224&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><img decoding=\"async\" src=\"https:\/\/justthenews.com\/sites\/default\/files\/styles\/social_media_share\/public\/2022-04\/biden%20hand%20on%20forehead.jpg?h=611e4269&#038;itok=si3CumfX\" class=\"ff-og-image-inserted\" alt=\"image\" \/><\/div>\n<p>Historically high inflation continues to ravage the U.S. economy under President Joe Biden as experts warn a recession may be around the corner following an unexpected downturn in economic growth.<\/p>\n<p>Concerns about an economy already overheated by massive government stimulus spending and near-zero interest rates only intensified on Thursday, when the U.S. Bureau of Economic Analysis <a href=\"https:\/\/justthenews.com\/nation\/economy\/gdp-first-quarter-decline-annualized-rate\">released<\/a> new figures showing the economy shrank in the first quarter of this year.<\/p>\n<p>Specifically, gross domestic product (GDP) declined at a 1.4% annualized pace, according to the bureau. The drop was unexpected, as analysts expected a 1% gain.<\/p>\n<p>&#8220;The driving factor behind this lousy number was inflation,&#8221; said Stephen Moore, the senior economist for FreedomWorks. &#8220;This is telling us since January it hasn&#8217;t been a good economy.&#8221;<\/p>\n<p>Moore noted the growth rate unadjusted for rising prices might have appeared to be strong, but inflation surged to a new four-decade high of 8.5% in March from the same month a year ago, driven by skyrocketing food and energy costs.<\/p>\n<p>&#8220;Wages, incomes, the stock market, and now economic activity are falling behind inflation,&#8221; he added, describing strong growth numbers from past quarters as an &#8220;illusion of a good economy.&#8221;<\/p>\n<p>Others noted Thursday&#8217;s economic report had some good news, citing how consumer spending rose by 2.7% and business investment increased by 7.3%. Plus, final sales to U.S. customers, a measurement that isolates how much Americans are buying from U.S. and foreign sellers by stripping out exports and inventories, increased an annualized 2.6%.<\/p>\n<p>However, this increase represents an acceleration of demand in an economy that&#8217;s already overheated, according to Douglas Holtz-Eakin, president of the American Action Forum.<\/p>\n<p>&#8220;All the things we were afraid of on Wednesday,&#8221; he said, &#8220;are still there and now worse.&#8221;<\/p>\n<p>The economy has been overheated for several months, expanding at an unsustainable rate and unable to meet consumer demand.<\/p>\n<p>&#8220;Biden&#8217;s economic policies got us into this with overheating,&#8221; said Desmond Lachman, a senior fellow at the American Enterprise Institute. He cited the American Rescue Plan, a Democrat-backed $1.9 trillion economic stimulus bill, among other government spending as contributing to the inflationary struggles the country is now enduring.<\/p>\n<p>&#8220;But it wasn&#8217;t just Biden,&#8221; added Lachman. &#8220;It was the Federal Reserve as well. Biden was spending too much, and the Fed kept interest rates low and kept printing money. It was both monetary and fiscal policy.&#8221;<\/p>\n<p>The result was historically high inflation, which the Federal Reserve is now trying to <a href=\"https:\/\/www.google.com\/url?sa=t&#038;rct=j&#038;q=&#038;esrc=s&#038;source=web&#038;cd=&#038;cad=rja&#038;uact=8&#038;ved=2ahUKEwiRmbyL8rf3AhWiZjUKHZ7GBRoQvOMEKAB6BAgDEAE&#038;url=https%3A%2F%2Fwww.reuters.com%2Fbusiness%2Ffinance%2Ffeds-racing-raise-rates-how-high-remains-an-open-bid-2022-04-28%2F&#038;usg=AOvVaw3f0YSQXaRPDCb8WFmALF6K\">combat<\/a> by raising interest rates. However, both Lachman and Holtz-Eakin noted the Fed has never successfully brought inflation down significantly without throwing the economy into a recession.<\/p>\n<p>Moore noted negative economic growth next quarter would technically put the U.S. in a recession, which is generally defined as a fall in GDP in two successive quarters.<\/p>\n<p>&#8220;We&#8217;re not there yet, but we&#8217;re skating toward recession,&#8221; he said.<\/p>\n<p>Some observers have said talk of a recession is overblown, but <a href=\"https:\/\/markets.businessinsider.com\/news\/bonds\/us-recession-warning-federal-reserve-interest-rates-inflation-deutsche-bank-2022-4\">Deutsche Bank<\/a> and <a href=\"https:\/\/finance.yahoo.com\/news\/a-recession-is-on-the-way-former-ceo-of-citi-wealth-management-145531921.html\">others<\/a> are predicting one is coming as the Fed moves to raise rates. Some argue a recession may even be a necessary evil to fight inflation.<\/p>\n<p>&#8220;We will get a major recession, but our strongly held view is that the sooner and the more aggressively the Fed acts, the less longer-term damage to the economy there will be,&#8221; Deutsche Bank analysts <a href=\"https:\/\/www.foxbusiness.com\/economy\/us-economy-major-recession-deutsche-bank\">wrote<\/a> this week.<\/p>\n<p>They&#8217;re not alone in that view.<\/p>\n<p>&#8220;You can slam on the brakes now and have a mild recession or keep going and have high inflation, which will eventually cause you to slam on the brakes later anyway and probably have an even worse recession,&#8221; said Lachman.<\/p>\n<p>Moore said inflation ruins economies and compared it to a tumor.<\/p>\n<p>&#8220;It&#8217;s like saying I can&#8217;t have chemotherapy because that will make me feel bad, but you&#8217;ve still got to take out the tumor,&#8221; he said. &#8220;People are currently getting poorer, not richer. We better get a policy of inflation down to 2% or 3% or 4%.&#8221;<\/p>\n<p>Beyond raising interest rates, the government needs to spend less to bring down inflation, economists told Just the News.<\/p>\n<p>&#8220;We have to be cutting government spending, not raising it,&#8221; said Moore. &#8220;That&#8217;s the single most important thing on the agenda. We won&#8217;t get real GDP up until we get inflation down.&#8221;<\/p>\n<p>&#8220;We should be growing with a ferocious recovery with COVID over,&#8221; he added. &#8220;If we had Trump levels of inflation now, we would&#8217;ve had massive growth last quarter.&#8221;<\/p>\n<p>Biden, however, seems to have a different idea in mind with spending. The president said Thursday he&#8217;s <a href=\"https:\/\/www.cnn.com\/2022\/04\/28\/politics\/student-loan-debt-joe-biden\/index.html\">considering<\/a> canceling &#8220;some&#8221; student loan debt and asked Congress for $33 billion in additional aid for Ukraine. Biden has also indicated he wants to pursue parts of his Build Back Better Act, a massive social spending bill that stalled in Congress last year.<\/p>\n<p>Biden said Thursday he&#8217;s &#8220;concerned&#8221; about a recession coming but not until next year. He also spoke positively of the economy despite the 1.4% drop in GDP, <a href=\"https:\/\/www.foxbusiness.com\/politics\/biden-not-concerned-about-recession-economy-shrinks-2022-first-quarter\">touting<\/a> the low unemployment rate and number of businesses created last year.<\/p>\n<p>Lachman said Biden&#8217;s remarks reminded him of an old joke about a man who jumped off the Empire State Building and was asked, as he passed the 50th floor, how it was going. &#8220;Well, everything&#8217;s all right up till now,&#8221; the man responded.<\/p>\n<p>Biden and the Democrats &#8220;had a party&#8221; last year by spending freely and enjoying strong economic growth, said Lachman. But this year, &#8220;they&#8217;re going to the hangover.&#8221;<\/p>\n<p>Newly releasing polling <a href=\"https:\/\/news.gallup.com\/poll\/392159\/inflation-concerns-fueling-low-economic-confidence.aspx\">data<\/a> from Gallup shows the economy, especially inflation, is a top priority for voters and Americans&#8217; confidence in the economy remains low, with just 20% describing current economic conditions as &#8220;good&#8221; or &#8220;excellent.&#8221;<\/p>\n<p>Biden pollster John Anzalone recently <a href=\"https:\/\/www.politico.com\/newsletters\/playbook\/2022\/04\/15\/bidens-pollster-2022-is-worst-political-environment-of-my-lifetime-00025485\">said<\/a>\u00a0that for Democrats it&#8217;s &#8220;the worst political environment that I&#8217;ve lived through in 30 years of being a political consultant.&#8221;<\/p>\n<p>Persistent, biting inflation and the prospect of a recession likely won&#8217;t help.<\/p>\n<p>&#8220;Politically, Biden and Democrats assured themselves they will lose the midterm elections big,&#8221; said Lachman. &#8220;They wanted a boom in 2022, not 2021.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Historically high inflation continues to ravage the U.S. economy under President Joe Biden as experts warn a recession may be around the corner following an unexpected downturn in economic growth.Concerns<\/p>\n","protected":false},"author":498,"featured_media":1898213,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1458224","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1458224","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/498"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1458224"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1458224\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1898213"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1458224"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1458224"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1458224"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}