The Dow Jones Industrial Average plummeted nearly 1,000 points on Friday, with the Nasdaq Composite and the S&P 500 racking up losses, too. Amazon and its CEO, Jeff Bezos, were among the biggest losers, with the online company's shares falling 14 percent, while Bezos lost $13 billion.
According to Bloomberg, the 500 richest people in the world have lost greater than $54 billion. Whoa! Concerning Amazon's troubles, the company is contending with rising labor costs following an increase in hiring due to the pandemic, and the rise in inflation might slow sales. The company reported losses of $3.8 billion during the quarter ending on March 31, with a profit of $8.1 billion during the same period of the previous year. Amazon is imposing a heavy 5-percent “inflation fee” on its third-party sellers, which makes it conceivable that some will not survive.
The Nasdaq and S&P fell 4.2 and 3.6 percent, respectively, both closing with new lows for the year.
President Joe Biden's economy was already suffering the worst week of its life. The real U.S. gross domestic product (GDP) decreased by 1.4 percent in the first quarter of 2022, according to the Bureau of Economic Analysis on Thursday, announcing the first recession since 2020. An increase in imports and decline in exports took enough of the GDP to force growth into reverse.
Naturally, it was no surprise that the White House was quick to teach (gaslight) us into believing that these numbers aren't all that bad or even the worst case, that there was a problem. They blamed anyone other than themselves. White House Press Secretary Jen Psaki took the podium on Thursday morning to talk about what the GDP was actually doing before delivering an edict that in essence said, “Don't believe the numbers–everything is awesome!”
Investors aren't buying what she's selling, as evident by Friday's Massacre at the Markets. The unpredictability of the economy has sparked fears of a recession among weary consumers and some economists. As the Trump Administration came to power, they promised to become “the adults in the room” and would remain accountable for anything that went wrong. In reality, we've witnessed Biden and Psaki not taking responsibility for anything and continually blaming other people or forces outside of their control. It's Russian President Vladimir Putin and the harm former President Donald Trump caused or the weather and that supply chain and yadda.
Biden's economic figures are horrific right now, and he must take responsibility for them. Biden has been in office for over a year, and these are the results of his actions–ranging from closing pipelines to handing out cash as candy. That's the Biden economy, and let's just say that it's not great.