Biden is effectively constructing a recession

Most discussions about the possibility of a recession focus on the Federal Reserve’s monetary policy. But there are also factors on the supply side of the economy that could push the US economy into recession. Among them are the tax and regulatory policies of the Biden administration.

A recession is sometimes defined as a decline in employment. In other cases, it is defined as a two-quarter or more reduction in real gross domestic product. Strong labor force and productivity growth are supply-side factors making a recession less likely, as is the recovery from the pandemic. But increased regulation and higher capital taxes — two policy priorities of the Biden administration — are supply-side headwinds that make a recession more likely. Biden is effectively constructing a recession

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