President Joe Biden blamed the economic contraction in the first quarter of 2022 on “technical factors” Thursday.
“While last quarter’s growth estimate was affected by technical factors, the United States confronts the challenges of COVID-19 around the world, Putin’s unprovoked invasion of Ukraine, and global inflation from a position of strength,” Biden said in a statement.
The national gross domestic product (GDP) fell at an unexpected annualized rate of 1.4% in the first quarter between January and March. In the fourth quarter of 2021, the GDP grew by 6.9%.
A Wednesday Gallup poll showed that 38% of adults rate the economy as fair, and 42% rate it as poor. Seventy-six percent of Americans said the economy was getting worse.
Nearly 40% of respondents in the poll said economic issues are the most important current problem in the U.S. Republicans were more likely than Democrats to cite economic issues as the top problem the country is facing, with 42% compared to 33%. (RELATED: Inflation Is Getting So Bad Retirees Might Have To Cut Back Spending Even More)
The poll was conducted by telephone interviews between April 1-19, had 1,018 adult respondents and a margin of error of +/- 4%.
Biden claimed the U.S. economy “continues to be resilient in the face of historic challenges” and mentioned that “last quarter, consumer spending, business investment, and residential investment increased at strong rates.”
US President Joe Biden speaks on lowering costs for consumers at Green River College in Auburn, Washington on April 22, 2022. – The President is reiterating the need to lower costs for families amid rising inflation. (Photo by MANDEL NGAN / AFP) (Photo by MANDEL NGAN/AFP via Getty Images)
He said the solution to growing the economy is to “bolster our supply chains and make more in America,” and asked Congress to pass legislation to do so.
“Congress should send to my desk a bipartisan innovation bill to bolster our supply chains and make more in America. And Congress needs to pass legislation to lower costs and lower the deficit, reducing families’ prescription drug and utility bills and restoring fairness to our tax code — without raising taxes on anyone making less than $400,000 per year. That’s how we grow our economy and strengthen the middle class,” Biden said.