President Biden seems to be in denial about the economy. He keeps insisting the economy is strong, and that taxes and spending should be increased, even after the government reported that economic growth has dropped sharply over the last three months.Real GDP growth dropped to 1.1% in the first quarter, nearly half the growth experts had forecast. The economy slowed as business investment fell sharply in the face of high inflation and rising interest rates.The large 12.5% drop in business investment is a warning sign that the U.S. economy could be heading into a recession in the coming months. In every recession since World War II, except the pandemic shutdown, business investment dropped before the household sector declined.This cutback in business investment will ripple through the economy, threatening jobs and wages. More than 130,000 people lost their jobs in major layoffs at U.S. tech and manufacturing companies in the first quarter, and more layoffs loom as the economy slows.Many Americans are already in a recession. Credit card debt is soaring, home foreclosures jumped 22% in the first quarter, and one million Americans had their cars repossessed last year.Biden keeps saying his economic plan is working, but most Americans do not agree. Large majorities (78%) believe the economy is in bad shape, and 70% believe it is getting worse for their families. Despite Biden’s claims, three out of four Americans believe his actions on the economy and inflation are either hurting (40%) or not making a difference (36%).The data shows that real GDP growth has averaged only 0.9% over the last five quarters. This dismal growth will get even worse if Biden’s tax increases are not blocked. His corporate tax rate increase would plunge the economy into a recession, and have a devastating impact on workers, families, and U.S. companies, including millions of small businesses.We need to change course and focus on increasing economic growth by reducing spending and taxes. We need to start growing the economy and not the government.
As Growth Declines Sharply, Nix the Biden Tax Hikes
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