The U.S. Bureau of Economic Analysis reported on Thursday that the U.S. economy contracted 1.4% during the first three months of 2021. This is the first contraction since the start of the COVID-19 pandemic in 2020 and happened even though trillions of dollars in federal stimulus were still hitting the economy at this time.
Alabama Republicans were quick to blame President Joseph R. Biden (D) and his economic plan for the unexpected bad economic news.
Congressman Mike Rogers (R-AL03) said, “President Biden is destroying our economy.”
U.S. Senate candidate Congressman Mo Brooks (R-AL05) said on social media, “It shouldn’t take this kind of economic stagnation to see that record spending and inflation hurts average Americans. Biden is in over his head, but weak-kneed RINOs are just as responsible. When I’m in the Senate, I’ll fight these debt-junkie policies.”
Senate candidate Katie Boyd Britt also chastised the Biden Administration for the poor economic news.
“Joe Biden’s historic weakness makes even Jimmy Carter’s presidency look good in comparison,” Katie Britt said in a statement to 1819 News. “With inflation at the highest it’s been in my lifetime; hardworking Alabama families, retirees, small businesses, and farmers were already getting crushed. Now, Biden’s America Last agenda has resulted in economic contraction and stagflation. It’s far past time to secure American energy independence, onshore good-paying jobs, shore up our domestic manufacturing and supply chains, end the reckless spending that’s pouring fuel on this fire, and put money back in everyday Americans’ pockets. On day one as Alabama’s Senator, I will fight to implement my plan to drive up American wage growth, benefitting families and communities in every corner of our state.”
U.S. Sen. Tommy Tuberville (R-Alabama) said on social media, “The White House will tell you President Joe Biden’s economic policies are working, but the numbers tell a different story. …Bottom line—Americans can't afford Biden's economy. The Dem response to this: raise taxes and increase government spending.”
The White House will tell you @POTUS’ economic policies are working, but the numbers tell a different story.
— Coach Tommy Tuberville (@SenTuberville) April 28, 2022
Since January:
➡️ The economy shrunk 1.4%
➡️ Inflation hit a 40-year record-high
Bottom line—Americans can't afford Biden's economy.https://t.co/6EU4y1YTgF
Economists are blaming the numbers on a spike in imports and a decline in exports that subtracted enough from U.S. gross domestic product (GDP) to push growth in reverse.
Gross domestic product measures various components of economic data: consumption, investment, inventory and exports.
White House Press Secretary Jen Psaki was asked about the poor economic numbers at the Whitehouse briefing on Thursday.
“On a number of these [data components], we had very positive signs …including consumption; consumer spending was up by about 2.5%,” Psaki said. “On investment, business investment, residential investment — both up as well. And on exports, the number was down, but that is largely because our economy is doing better than many economies around the world. So, while we were purchasing a lot of goods from other countries, there wasn’t the same capacity to purchase our goods. That is — that is why that number was — was lower.
“And then on inventory, which is another piece of data that is measured, quarter four of last year had the largest inventory number of any quarter in history, in large part because, as the supply chain problems were being fixed — thanks in large part to the President’s efforts — businesses were able to get goods, and they made enormous purchases — largest numbers to stock their inventory of any quarter in history. And this — what this data is measuring is changes in growth from quarter to quarter,” Psaki continued. “So, because of that, even though this was the fifth-largest inventory quarter in history, in comparison with the fourth quarter of last year, it showed a decrease, which led to [the] number. But what [economists] look at as measures of the strength of the economy and what they’re monitoring closely from quarter to quarter as important indicators are consumer spending, business investment, residential investment. All of these increased at strong rates in the first quarter and as did the overall demand, and are good signs for the strength of the economy.”
Reporter: "What is your view on why economy shrunk 1.4 percent during the first quarter?"@PressSec: "On exports the number was down, but that is largely because our economy is doing better than many economies around the world." https://t.co/85fnassa6P pic.twitter.com/ralt94AeVQ
— The Hill (@thehill) April 28, 2022
The strength of the economy, or the lack thereof, will likely be a key issue when voters go to the polls this November.
To connect with the author of this story, or to comment, email brandon.moseley@1819News.com.
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