DANIEL VAUGHAN: Biden was right, he does get to face another recession

During the Trump administration, people liked to joke that there was a tweet for everything. Whatever situation hit, Donald Trump likely had something to say about it in the past. The same is true of Joe Biden; whether a tweet or a speech so old, your author here didn’t even exist. In the middle of the pandemic and the 2020 Presidential race, Biden declared, “I helped pull this country out of a recession before — and, as president, I’ll do it again.”

His dumb campaign team thought they were saying that Trump had driven the country into a recession. Biden said, “President Obama and I left Donald Trump a booming economy — and he caused a recession. He squandered it just like he has everything else he’s inherited in his life.”

Trump indeed triggered a recession. We had this thing called a global pandemic where millions died from a virus that emerged out of China. Trump led the charge and brought the American economy to a screeching halt — of course, we entered a recession. Only a moron would think you could halt all economic activity and not trigger a recession — that’s why we passed trillions in aid. Biden wanted to prolong that shut down.

Layoffs have started.

Now, though, it seems Biden was more prophetic than he thinks. He’s right. Biden will be tasked with pulling the US economy out of a recession. A mess of his own creation.

I know Biden and his White House staff deny we’re in a recession. They point to various data to say that things are better than two consecutive quarters of economic contraction. But the hard evidence of GDP shrinking is hard to deny. After that, the anecdotal evidence is piling up.

In an exclusive, The Wall Street Journal reports that Wal-Mart is laying off hundreds of corporate employees this week. That announcement comes on the heels of Wal-Mart reporting declining profits as consumers shift their spending habits amid 40-year high inflation.

The Journal added, “Walmart was one of several retailers that was caught off guard this spring as shoppers shifted their spending away from products that have been in high demand throughout much of the pandemic. In addition, some products arrived late due to supply-chain snarls, causing oversupply as shopper interest waned. Target Corp. in June issued a profit warning after it reported quarterly results that, like Walmart, showed a surge in inventory levels. Last week, Best Buy Co. cut its sales and profit goals, saying consumers had pulled back on electronics.”

Layoffs in multiple sectors.

Wal-Mart is the largest employer in the United States. The retail sector is showing signs of weakness, as are others. “Ford Motor Co. is preparing to cut thousands of white-collar workers, while technology giants such as Microsoft Corp. and Facebook parent Meta Platforms Inc. have pulled back.”

The tech sector is seeing layoffs too. CNBC reports that “Amazon reduced its headcount by 99,000 people to 1.52 million employees at the end of the second quarter after almost doubling in size during the pandemic, when it needed to beef up its warehouse capabilities. Shopify, whose cloud technology helps retailers build and manage online stores, cut about 1,000 workers, or around 10% of its global workforce.”

The banking sector is reporting issues too. CNBC says, “Goldman Sachs responded by slowing hiring and is considering a return to year-end job reductions, according to a person with knowledge of the bank’s plans … JPMorgan CEO Jamie Dimon warned investors in June that an economic ‘hurricane’ was on its way, and said the bank was bracing itself for volatile markets.”

None of this includes the Cryptocurrency space, which saw massive growth over the past few years. That entire sector is officially in a winter, where layoffs are widespread, and companies are imploding. Crypto companies have seen as much as 90% or more of their value wiped out in the first six months of this year.

Biden faces the sole blame.

The only saving grace is that there are so many job openings that people can find work if they need to do so. The question is, how long does that keep up? The Federal Reserve is actively trying to raise interest rates to kill off all the excess jobs. Opportunity is shrinking, and average Americans are forced to foot the bill of bad policy in Washington DC.

For over a year, people have posted stickers on gas pumps with a picture of Biden with the phrase, “I did that” on it. It’s a light-hearted jab at the pain everyone feels at the gas pump.

What happens when people see that picture on things like pink slips when they lose work? What happens when job openings dry up, and unemployment starts inching up? Paying more for gas is painful, but everyone is suffering together when unemployment is low.

High inflation when you’ve lost your job amid a recession is another matter entirely. That’s where we’re headed right now — and Biden has no one to blame but himself. He said he was going to pull the country out of another recession. Congrats, Joe! You got your wish. You ran the pandemic recovery of Trump right into the rocks.