Economists Warn Of Catastrophe Ahead
How will Biden prevent this?
Just when we thought things couldn’t get any worse, the economy now appears to be heading into a recession based on new information regarding the decline of consumer sentiment.
According to Fox Business, new research gathered by David Blanchflower of Dartmouth College and Alex Bryson of the University College London shows that the United States can possibly face a recession soon.
Blanchflower and Bryson explained, “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 to recover quickly from the huge downturn in 2020. However, downward movements in consumer expectations in the last six months suggest the economy in the United States is entering recession now (Autumn 2021).”
A decline in consumer expectations suggests the US economy is in recession even though employment and wage growth indicate otherwise: @D_Blanchflower co-authors a paper showing consumer expectation indexes tend to predict US downturns 18 months in advance https://t.co/SYoqMr3kLv pic.twitter.com/GT7OwHWQ49
— Lisa Abramowicz (@lisaabramowicz1) October 8, 2021
The two economists further explained that the “clear downward movements in consumer expectations” in the past half-year shows the United States could be heading straight into a recession.
“It seems to us that there is every likelihood that the US is entered recession at the end of 2021,” they concluded.
On the other hand, President Biden’s Treasury Secretary Janet Yellen believes a recession will happen if Republicans don’t help Democrats raise the debt ceiling by December, something Republican Mitch McConnell said they will not do under any circumstances.
JUST IN: Yellen warns default on national debt would cause recession https://t.co/MRjpEHJQbN pic.twitter.com/iAmW0T9qr9
— The Hill (@thehill) October 5, 2021
