Los Angeles Times staff writer Don Lee reported Wednesday that while an economic recession appears imminent, it’s actually no big deal.
The article headline — “Yes, a recession looks inevitable. But it may not be that bad. Here’s why” — was widely mocked by conservative Twitter commentators as the latest example of the mainstream media rushing to play defense for President Biden.
- In the story, Lee quoted analysts and financial professionals who, contra Biden, see a recession coming as the Federal Reserve hikes interest rates to fight rampant inflation.
- However, Lee assured readers, “recessions are a normal part of American economic life. … And in the present case, most professional economists think any downturn now is likely to be relatively mild, with a fairly quick recovery.”
- “Many households are flush with cash, and jobs are plentiful with demand for new workers strong. Banks are well capitalized, which gives them a solid buffer against a business contraction,” Lee wrote, so really, the problem is all in Americans’ heads.
- “What may be different this time [compared to the big recessions of 2017 and 2020] is the public’s state of mind, coupled with a handful of unusual factors — first among them the grinding war in Ukraine.”
The Biden administration, with generous support from the media, has gone from claiming inflation would be transitory to trying to convince Americans the economy is good, actually, to looking for scapegoats.