Publisher's Note: This post appears here courtesy of the John Locke Foundation. The author of this post is Brittany Raymer.
President Joe Biden claimed in a tweet that he took the nation from an "economic crisis to an economic recovery."
Apparently, not realizing most of the nation did not share his administration's sentiment given the high inflation and mounting fears of recession and stagflation, the tweet was deleted.
Reported by The Daily Wire, the president tweeted on August 31, "The American Rescue Plan took America from an economic crisis to an economic recovery. And not a single Republican voted for it."
That's perhaps because most Republicans probably knew that the answer to inflation is not a $1.9 trillion stimulus package. Within a day, the tweet has now mostly disappeared from the internet with the exception of the Factba.se website.
Though the administration remains optimistic, with Kamala Harris tweeting also on August 31 about how the U.S. is "growing our economy,"
the stock market tells a different story.
On August 31, the New York Post shared a warning from Wells Fargo analysts, which shows the economy's rather precarious state.
"The next few months could be choppy or lower for equity markets, while economic data weaken, financial conditions tighten, and financial markets eventually accept that the Fed and other global central banks will raise and hold rates until price stability returns,"
the analysts said.
The report continued: "The extent of further volatility will depend heavily upon the track of the global economic slowdown and central banks' efforts to reduce the cash that drives spending,"
All of this is partially a response to the expectation that the Fed will once again raise interest rates, causing "some pain"
for American households.
While it is true that the labor market remains rather strong, with the lowest jobless claims in two months, that doesn't mean that the economy is necessarily healthy nor in a strong recovery.
In fact, just googling recession results in various concerning headlines. From Politico's: "We're in a housing recession"
to CNBC's "These kinds of stocks do well when recession fear is in the air, UBS says,"
the outlook isn't as rosy as the administration would like people to believe.