Skip to content
Home
>
Business
>
Recession

Recession

By: Frank Corder - July 28, 2022

President Joe Biden

U.S. economy contracts for second consecutive quarter.

The U.S. economy is in recession.

For the second quarter in a row, U.S. GDP is down, declining by 0.9% on the heels of a 1.6% decline in the first quarter of 2022.

While unemployment remains relatively low, inflation is at a 40-year high and real wages have declined since the beginning of 2021.  This is particularly harmful for families at the lowest end of the wage scale who are squeezed by low savings rates and decreased purchasing power of goods.

In addition to food prices spiking by double digit percentages, gas prices have been a huge driver of increasing costs for both business and consumers.  The uncertainty in the oil and gas industry is causing significant problems for business community and average consumers alike.  Currently, AAA reports that gas is $3.86 per gallon in Mississippi with the national average of $4.28.  That is up from January 2021 in Mississippi where the price was $2.08, an 85% increase, but down from its over $4.00 per gallon high earlier this summer.

The Commerce Department’s economic news also follows yet another interest rate increase announced by the Federal Reserve just a day before.  That benchmark rate increased three-quarters of a point for a second straight time on Wednesday as the Fed seeks to find a “soft landing” for the rampant inflation across the country.

 

About the Author(s)
author profile image

Frank Corder

Frank Corder is a native of Pascagoula. For nearly two decades, he has reported and offered analysis on government, public policy, business and matters of faith. Frank’s interviews, articles, and columns have been shared throughout Mississippi as well as in national publications. He is a frequent guest on radio and television, providing insight and commentary on the inner workings of the Magnolia State. Frank has served his community in both elected and appointed public office, hosted his own local radio and television programs, and managed private businesses all while being an engaged husband and father. Email Frank: frank@magnoliatribune.com