Even as inflation continues to make even certain essential products unattainable for many working-class Americans and a growing majority of consumers are bracing for a deep recession, the Biden administration is still trying to paint a rosy picture of the nation’s economy.
Peter Navarro, who served as an economic adviser to former President Donald Trump, weighed in on the disconnect during a recent Newsmax TV interview. He said there is “like a Grand Canyon” between the White House’s rhetoric and the perception of the American people.
“This whole idea of co-opting the term supply-side economics and trying to say that their Keynesian, gorge, demand-side spending somehow is going to change the structure of the economy in a good way — not going to hunt,” he said.
📉 They changed the definition of recession…
🚧They changed the definition of infrastructure.
➡️ Why WOULDN’T they change the definition of the word “created” https://t.co/B4A2kPF8nP
— Joseph Pinion III (@JosephPinion) September 10, 2022
Such “cognitively dissonant” messaging is not limited to the federal government, Navarro noted, citing the duplicity of California’s push to eradicate gas-power vehicles while telling citizens to abstain from charging their electric cars.
“They finally figure out electricity is needed for these cars,” he said, asserting that current tax credits will ultimately benefit Chinese electric vehicle manufacturers.
Navarro claimed that the current trajectory “is exporting and increasing our supply chain dependencies on the electric vehicle supply chain, broadly around the world.”
With stocks and bonds trending downward, he warned of an impending “stagflation scenario,” noting that the current situation across Europe “should scare the hell out of us.”
A combination of energy scarcity and the ongoing war in Ukraine has prompted the economic downturn throughout much of the continent. At some point, Navarro warned, America will “basically import both their inflation and their recession.”
Earlier this summer, even CNN personalities rejected President Joe Biden’s claim that the nation is not entering a recessionary period despite economic reports that indicate it is.
As Chris Cillizza said during one segment in July: “We get why they’re doing it politically, at the same time, we have these terms for a reason. You don’t have to like it. Of course, they don’t like it because, you know, Joe Biden’s handling of the economy was at 25% or 30% in our most recent poll. Yeah, it’s a problem for them [and] this adds to the problem, but you don’t get to change the nomenclature in the middle of a campaign because it doesn’t work for you.”
A recent Economist/YouGov poll found that 61% of respondents believe America is already in a recession, which represents a four-point increase compared to the same poll the previous month.