His thoughts — New GDP reports points to start of recession
Published 4:59 pm Wednesday, August 3, 2022
A recent Gross Domestic Product (GDP) report showed exactly what we thought it would, and what Democrats did their best to deny all week – that the U.S. economy entered a recession in the second quarter, with a -.9% growth rate.
The White House can try to spin the report all it wants. Truth is, we’re entering a recession because Democratic leadership in D.C. refused to act against sky-rocketing inflation.
It’s not complicated. The U.S. has gone into a recession as a direct result of President Biden’s unchecked and reckless spending.
No one is rooting for or celebrating a recession, but the fact that one was coming was obvious to anyone but Democrats who are preparing to take a beating in November. Nobody wants a recession, but bad Democratic economic policies made this one inevitable.
A recession is destructive, hurts Virginia families and businesses, and makes life harder for everyone. That’s why we work so hard to avoid them.
America’s economic success – regardless of who controls Congress or the White House – is Virginia’s success, and the success of every Virginian
Unfortunately, unchecked inflation has now led to its inevitable end – a recession.
Democrats dumped $1.9 trillion into the economy in “new” money – conjured into existence by printing presses.
The economy was in the process of recovering when this money hit, creating all sorts of new demand – but with supply chain disruptions and employment shutdowns, there weren’t enough goods and services to be had.
In the end, it created the classic problem: too many dollars chasing too few goods.
Taming inflation means raising interest rates, which always, without fail, leads to a recession.
Mortgage rates have risen to nearly 7% recently, rising from lows under 3%.
Democrats are desperate to find any good news anywhere.
The Biden administration is cheering $4 gasoline, noting how far prices have fallen, and that they have decreased for more than 30 consecutive days.
As one political commentator put it, “It’s easy to fall for a long time when you’re falling off the top of Mt. Everest.”
To make matters worse, Democrats in Washington are now proposing tax hikes and even more spending in a last-minute revival of “Build Back Better.”
State government can’t do much to fight inflation. We don’t control the printing presses, and Virginia’s two-year budget is a rounding error compared to Federal spending in the same time frame — $150 billion v. $10 trillion.
What we can do, though, is make things easier for families every way we can.
This means tax cuts, and less red tape to deal with.
Republicans fought for the end of the grocery tax, a gas tax suspension and even lower income taxes through a higher standard deduction.
Democrats opposed all three to one degree or another.
As we enter a recession, it’s more important than ever to take action to make things easier for Virginia families. Voters will remember who fought for higher tax rebates, lower taxes, and tried to provide relief at the pump — and who fought to block relief efforts.
Del. Tommy Wright can be reached via email at DelTWright@House.Virginia.gov or (804) 698-1061.