The Irrelevant Recession: Congress Needs to Reverse Course to Improve the Economy

Source: Cato Institute
by Norbert Michel

“Recession talk has dominated the news lately with an endless supply of pundits debating whether the United Sates is in a recession. It’s good to have that debate, but virtually everyone seems to have forgotten the incredibly abnormal circumstances fueling the dispute. That’s not to say that anyone should ignore the bad policies — there are tons of them — contributing to economic turmoil, but policymakers will just make things worse if they lose sight of what’s happened. The obvious starting point is early 2020. … regardless of how one labels the current economy, it is not part of anything close to a normal business cycle. And forecasters should drop any pretense that they know when things will get back to normal because all such forecasts depend on wildly abnormal data.” (08/01/22)