(Jacob Bruns, Headline USA) Using the research and theories of current Treasury Secretary Janet Yellen many economists appeared to have wrongly predicted a 2023 recession, Bloomberg News reported.
The news came as the Biden administration tries desperately to redefine “Bidenomics,” with the president’s popular support cratering based largely on his failed economic policies.
While the consumer-price index has continued to tick up for basic necessities such as food and energy, the Federal Reserve recently signaled that inflation—or the rate at which the dollar gets devalued—has returned to what it considers to be an acceptable range following a year of jacking up interest rates to deter borrowing and spending.
Many feared that the Fed’s remedy to address Bidenflation would result in an equal and opposite countershock—and indeed it has taken a severe toll on sectors like the housing market.
But in terms of the employment rate, the effect has been the opposite. With some lower-income Americans forced to work extra jobs to make ends meet, the jobs market has continued to rise, surpassing its pre-pandemic level.
The vast majority of new jobs in November (83%) came in just three sectors: health care, government employment, and food service, Axios reported.
Many of the health care jobs being added are still part of the pandemic recovery, which shrank by 1.5 million jobs in March 2020 and April 2020 alone.
Other hospital and ambulatory care jobs may be rising to meet the increased needs of illegal immigrants, who are bringing once dormant communicable diseases, such as tuberculosis, back into the country. Officials estimate that more than 10 million migrants have entered the country illegally on Biden’s watch.
Moreover, ahead of the 2022 midterms, the Biden administration, in partnership with Wikipedia and other establishment sources, worked tirelessly to redefine the word “recession” so that America’s economic downturn did not fit the definition.
While debate remains over whether the nation entered into a short-lived recession following two consecutive periods of negative growth in the gross domestic product, most concur that the country, thus far, has succeeded in avoiding the type of “hard landing” that, in the past, has led to large-scale layoffs.
According to Yellen herself, economists made a mistake because they believed that high inflation had to be countered by decreased demand and, ultimately, higher unemployment.
“So many economists were saying there’s no way for inflation to get back to normal without it entailing a period of high unemployment, [or] a recession,” Yellen claimed at a recent Wall Street Journal event.
“And a year ago, I think many economists were saying a recession was inevitable,” she continued. “I’ve never felt there was a solid intellectual basis for making such a prediction.”
But Yellen did not mention that most of those predictions were based upon her own politicized economic modeling, which the former University of California, Berkeley professor “had been teaching for decades.”
Yellen herself also received harsh criticism for her failure to recognize that the inflationary spike early in the Biden presidency was not, as she long claimed, “transitory.”
And some have continued to wonder if the overly rosy economic data being pushed by officials isn’t selectively cherrypicked—or worse, artificially manipulated—to downplay a much bleaker forecast heading into the coming election year.
According to Bloomberg’s Tyler Cowen, the most troubling sign that he has seen in the science of economics is the politicization of the field, which no longer seeks to explain things rationally, but to justify political candidates.
“Most of all, it’s important to acknowledge how politicized macroeconomics has become,” he wrote.
“There are a bunch of economists going around right now saying they were right about how the U.S. would avoid a recession this year,” he added. “A deeper look, however, reveals a much longer and less favorable story.”
Headline USA’s Ben Sellers contributed to this report.
