MAGNESS: A Recession by Any Other Name

Phillip W. Magness in the Wall Street Journal writes that an economic downturn is a political problem, so the White House is playing semantics by redefining the term…

The White House’s attempt to wordsmith its way around a recession shows the dangers of politicizing economic terms. Mr. Biden’s economic advisers are trying to buy time by exploiting NBER’s otherwise defensible methodology. They hope doing so will insulate the administration from the electoral backlash in the event of a downturn.

The president’s economic team should think twice before discounting the risk of a recession. After all, they stumbled into the current inflationary crisis after a year of trying to manipulate the language: Inflation was “transitory” and therefore of little concern until it eventually topped an annualized 9%. Let’s not stumble into a recession because the White House has political priorities that conflict with economic reality.

Read the Full Piece at The Wall Street Journal