WASHINGTON, D.C. — Today, the Commerce Department released its first estimate of gross domestic product (GDP) for the second quarter of 2022 and found the U.S. economy shrank by 0.9%. This follows the first quarter GDP decline, which fell by 1.6%.
Patrice Onwuka, director of the Center for Economic Opportunity (CEO) at Independent Women’s Forum, issued the following statement:
“The economy shrank again for a second quarter in a row, the usual definition of a recession, but that’s not the only bad news from this report. Both real disposable income and personal savings fell once again. This means that despite earning more, Americans have less money to purchase groceries, gas, and other basics and are using income they would save to make ends meet. As the primary shoppers in most households, women know all too well that inflation is eroding quality of life in America.
“A war on American energy and inflationary federal spending policies, such as the multi-trillion dollar ‘American Rescue Plan,’ fueled the current level of inflation. Instead of quibbling over what constitutes a recession, Washington should be laser-focused on strengthening our supply chain and encouraging production of all forms of energy. Instead, the Left has landed on a deal to accelerate inflation with significant new spending, tax hikes on businesses, and subsidies to politically-connected industries.”
Yali Nunez, visiting fellow at Independent Women’s Forum, added,
“As the GDP fell 0.9% in the second quarter, the second straight decline, America continues to descend into an economic abyss under the Biden administration. We are now in an official recession. Hispanic Americans are some of the most affected. Hispanic Americans have been grappling with higher inflation rates than the national average. The Hispanic community deserves better, so in the future, we should elect a leadership that guides us to prosperity rather than struggle and regression.”
Independent Women’s Forum is dedicated to developing and advancing policies that aren’t just well intended but actually enhance people’s freedom, choices, and opportunities.
Independent Women’s Forum’s Center for Economic Opportunity (CEO) aims to educate the public about how government policies impact people’s opportunities for economic development and upward mobility.