WASHINGTON (Nexstar) — The U.S economy shrank slightly during the first quarter of 2022, which is causing people to wonder whether they should be worried about a possible recession.
The drop in economic growth comes after a period in which the economy grew at its fastest rate in decades in 2021.
“Well, I’m not concerned about a recession,” President Joe Biden said.
The economy had an annualized decline of 1.4% in the first quarter of this year. Still, President Biden says the bigger picture shows consumer spending and business investment both grew.
“(They) increased at significant rates – both for leisure, as well as hard products,” Biden said.
Plus the President says unemployment is at the lowest rates since 1970.
However, Senator Marsha Blackburn (R-Tenn.) says inflation continues to be a big problem.
“If you are going to have more money chasing fewer goods, you’re going to have inflation,” Blackburn said.
Joann Weiner, an economics professor at George Washington University says things could be worse.
“People have jobs, but prices are going up,” Weiner said. “Would I rather have no inflation and no job? Or would I rather have a job and some inflation? You know, I could say, I’d rather have some inflation but also have a job.”
Weiner also says there’s a possibility this drop in growth is only temporary. Both she and President Biden say, at least for this year, most economists are not predicting a recession.
“I would say you don’t really need to worry too much about it now. There’s nothing you can do about it and it’s just one point,” Weiner said.