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Scott introduces Senate resolution supporting historic definition of recession

U.S. Sen. Tim Scott (R-SC) joined two of his Republican colleagues in proposing a resolution that supports the historic definition of an economic recession in the United States. 

“In the midst of a 40-year high in inflation, the Biden administration is now attempting to redefine the term recession,” Sen. Scott said. “But twisting words does not change the reality: Americans are hurting because of Democrats’ harmful economic policies.”

Senate Resolution 724, which U.S. Sen. Ted Cruz (R-TX) sponsored on July 27 with original cosponsors Sen. Scott and U.S. Sen. Cynthia Lummis (R-WY), would express the sense of the U.S. Senate that the historic definition of a recession is two negative quarters of gross domestic product (GDP) growth, according to the text of the resolution. 

Historically, this has been the definition of an economic recession and, globally, the most commonly used and widely accepted definition of a recession is two negative quarters of GDP growth.

“The federal government should continue to use the historic definition of a recession,” according to the text of the resolution.

Meanwhile, the Biden administration has said that this shorthand recession definition does not adequately explain the unusual circumstances of America’s pandemic recovery, particularly in light of the nation’s strong labor market. And both the White House Council of Economic Advisers and the U.S. Treasury Department on July 21 and July 25, respectively, noted that considerable evidence suggests that the U.S. economy is not currently in a recession.

“This administration can continue to push reckless spending proposals and insist the economy is moving in a positive direction, but Americans simply aren’t taking the bait,” said Sen. Scott. “I’m proud to join Senators Cruz and Lummis on this resolution that puts words to the struggle families are facing across this nation.”

The legislation has been referred to the U.S. Senate Homeland Security and Governmental Affairs Committee for consideration.

Ripon Advance News Service

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