On Thursday morning, the Commerce Department released 2nd quarter GDP numbers showing that for the second quarter in a row, the economy suffered negative growth. For any American with a basic understanding of economics, that means the United States is officially in a recession. But according to the broadcast news networks, that doesn't mean we are in a recession.
On ABC's World News Tonight, anchor David Muir claimed Thursday's GDP report is "raising fears of recession" instead of marking the beginning of one. Muir noted that the United States had "the second quarter of decline in a row, which typically has been the definition of recession." Instead of pointing out how Biden is lying about the state of the economy, he regurgitated Biden's comments from earlier in the day that "President Biden [is] pointing to other key factors, too, among them, the jobs numbers, saying this economy isn't an easy one to label right now."
Correspondent Rebecca Jarvis played it off as if there was no clear definition of recession and this was just another political debate: "whether you call it a recession or not, the U.S. economy is losing momentum at the same time American families are facing the highest inflation in a generation."
Despite the fact that we are currently in a recession thanks to the policies of Joe Biden and Democrats in Congress, Jarvis claimed "many economists tonight now forecasting a recession will begin towards the end of this year or early next."
Meanwhile, on CBS Evening News, anchor Norah O'Donnell proved how out of touch she is with even her own correspondents, who reported much more soberly on the economy, when she touted "President Biden is going on the offensive against growing fears that the country is heading into a recession" adding that "this follows today's report that the country's GDP fell for a second straight quarter."
Before tossing to correspondent Caitlin Huey-Burns, O'Donnell hyped the fact that Biden "is instead focused on what could be a major legislative victory."
Finally, on NBC Nightly News, anchor Lester Holt announced that there's "new data showing that it [the economy] shrank for the second quarter in a row. But the Biden administration is pushing back on the idea that we're already in a recession."
Ikeda tried to explain away the terrible GDP numbers by claiming "slowdowns in both the housing market and consumer spending contributed to the decline but are part of the federal reserve's goal, to lessen demand by interest rates. All in an effort to bring inflation down from 40-year highs in a complex economy."
This economic gaslighting from the three networks was made possible by Chewy on ABC, Allstate on CBS, and Progressive on NBC. Their information is linked.
To read the relevant transcripts of each segment click "expand":
ABC’s World News Tonight
July 28, 2022
6:37:24 p.m. EasternDAVID MUIR: We turn now to the other major news this Thursday night, the new report out tonight raising fears of recession in the U.S. The nation's output of goods and services, the GDP, fell 0.9 percent in the past three months, the second quarter of decline in a row, which typically has been the definition of recession. But tonight, President Biden pointing to other key factors, too, among them, the jobs numbers, saying this economy isn't an easy one to label right now.
But whether it's officially a recession or not, Rebecca Jarvis tonight with families across the country who say they're feeling this on everything they're paying for.
REBECCA JARVIS: Tonight, whether you call it a recession or not, the U.S. economy is losing momentum at the same time American families are facing the highest inflation in a generation.
[...]
JARVIS: The Commerce Department reporting today that from April to June, consumer spending slowed, business investment fell, and stores slowed their restocking of shelves. President Biden taking an optimistic tone on the news.
PRESIDENT JOE BIDEN: If you look at our job market, consumer spending, business investment, we see signs of economic progress in the second quarter, as well.
JARVIS: David, the National Bureau of Economic Research is the nonprofit, nonpartisan organization that officially declares when recessions begin and end here in the United States and they look at metrics including GDP, but also including things like unemployment and jobs, which have held up despite this record inflation. Many economists tonight now forecasting a recession will begin towards the end of this year or early next.
CBS Evening News
July 28, 2022
6:35:47 p.m. EasternNORAH O’DONNELL: Let's turn to the White House where President Biden is going on the offensive against growing fears that the country is heading into a recession, this follows today's report that the country's GDP fell for a second straight quarter. The President is instead focused on what could be a major legislative victory. Here's CBS’s Caitlin Huey-Burns.
CAITLIN HUEY-BURNS: With news that the U.S. economy shrunk again last quarter President Biden downplayed fears about a recession.
PRESIDENT JOE BIDEN: There is going to be a lot of chatter today on Wall Street and among pundits about whether we are in a recession. But if you look at our job market, consumer spending, business investment, we see signs of economic progress in the second quarter as well.
[...]
HUEY-BURNS: The economy has now contracted for two quarters in a row. Considered the basic indicator of a recession. Business investment fell from April through June and consumer spending slowed. CBS News business analyst Jill Schlesinger says whether it’s technically a recession or not doesn't matter.
JILL SCHLESINGER: People are freaking out that prices remain high. It is hurting people who make less than the median household income of 60 or 70,000 dollars. And frankly, it’s hurting everyone.
NBC Nightly News
July 28, 2022
7:06:23 p.m. EasternLESTER HOLT: Let's get to the economy now and the new data showing that it shrank for the second quarter in a row. But the Biden administration is pushing back on the idea that we're already in a recession. Emilie Ikeda has more.
EMILIE IKEDA: Today's numbers confirm it: the U.S. Economy is slowing.
[...]
IKEDA: Gross domestic product fell slightly by 0.9 percent. The U.S. economy shrinking for the second quarter in a row, fuelling fears of a recession, fears President Biden tried to calm.
[...]
IKEDA: Slowdowns in both the housing market and consumer spending contributed to the decline but are part of the federal reserve's goal, to lessen demand by interest rates. All in an effort to bring inflation down from 40-year highs in a complex economy.
