If the country is in a recession you will eventually see higher unemployment, lower wages and opportunities will be harder to come by. Congressman Jim Banks argues that we are either in a recession or about to be in one, while Treasury Sec. Janet Yellen says our situation does not fit the definition of recession.
Banks said on Washington Watch with Tony Perkins, that he believes the “pending recession” was totally avoidable and was caused by government spending.
The Republican who represents northeast Indiana, said he believes the Biden administration is at fault.
“Now all of the sudden the Biden administration is trying to change the definitions of what a recession means,” said Banks. “You can’t message your way out of this economic picture we find ourselves in.”
The definition of a recession according to the National Bureau of Economic Research is “a significant decline in economic activity that is spread across the economy and lasts more than a few months.” It can also be defined by two consecutive quarters of negative growth.
The argument from the Biden administration is that the creation of hundreds of thousands of jobs every month is an indication that we are not in a recession.
Banks argues that at the ground level peoples’ economic situations are grim because of inflation.
“The American people are hurting. I’ve never had more constituents call my office than right now who are desperate because of rising gas prices, because of inflation that’s near ten percent, making it harder for them to make ends meet,” he said.
Banks said Hoosiers will spend about $7,000 more this year than last because of inflation.
“We can’t keep it up. We have to get back to fiscal responsibility,” he said.
Banks and other Republicans have proposed budgets that cap government spending and balance the budget within a decade.
Some Democrats say that raising wages will give people more spending power and help lift them from some economic troubles.
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