Are Layoffs a Sign of a Crash Landing for US Economy?
(ConservativeInsider.org) – President Joe Biden has repeatedly touted his administration’s supposed work to rebuild the economy after the COVID-19 pandemic. He consistently reassured Americans leading up to the midterm elections the country was not heading into a recession. However, despite his adamant rhetoric, many experts are predicting a “crash landing” after watching major companies lay off workers.
Major Tech Companies Cut Back
In early November, both White House Press Secretary Karine Jean-Pierre and Chief of Staff Ron Klain told reporters America is not in a recession, nor does the administration think one is coming soon. Yet, this flies in contrast to the cutbacks made by Disney, Meta, and Amazon.
Meta, which owns Facebook and Instagram, is shrinking its workforce by 13% to cut costs. Amazon is making similar moves as it moves around 10,000 employees out of its technological and corporate offices. Disney recently announced a hiring freeze and warned executives how employee departures are likely imminent as it reevaluates spending.
These are just the largest businesses to announce layoffs, with others taking place in other sectors mirroring them.
Debt Balloons, Fed Increases, and Expert Warnings
Economist Stephen Moore recently spoke with Just the News about the economy, stating he believes the US is “on the verge of a debt-driven economic crash landing.” He based this prediction on the estimated $1 trillion in consumer debt tallied up recently as citizens use credit cards to get them through this time of intense inflation and the approximately $4.1 trillion in national debt the Biden administration has accrued.
To stem inflation, the Federal Reserve continues to raise rates, but this tactic also tends to push the economy into a recession. These factors, on top of the layoffs taking place, certainly make people wonder if things will get even worse before they get better.
Will President Biden Ever Admit to a Recession?
Right now, Bankrate believes there is a 65% chance the US sees a recession in the next year to year and a half, while Bloomberg thinks there is a 100% chance of such a turn. Even Amazon founder and executive chair Jeff Bezos warned in a recent CNN interview that everyone should make small cuts where they can to better prepare for a rough 2023.
Is President Joe Biden in denial of expert opinions, or does he have a secret trick up his sleeve to magically keep a recession at bay?
While these opinions and layoffs do seem a little frightful, there is still a strong labor market as COVID struggles fade into the background. In addition, American grit, ingenuity, and drive are all things the experts can’t factor into their predictions.
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