theSkimm - Daily Skimm: Guess what

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The US’s GDP just shrunk for the first time in two years.

Are we ok? Like really.

We’re fine. If we’re gonna be sad we’re gonna do it with increased consumer spending. Let’s take it back. The US’s GDP — which measures the value of goods and services produced — has been on the up and up since its drop at the beginning of the pandemic. Last year, the economy experienced the fastest growth since the ‘80s. But yesterday, the Commerce Dept reported that GDP dropped 1.4% in the first three months of this year.

Why?

A bunch of reasons — from rising COVID-19 cases to inflation to the war in Ukraine. But the biggest takeaway is the US is dealing with a trade deficit. Basically, Americans imported more products than they exported. But thanks to higher wages and a strong job market, they still added to cart and swiped their cards…music to economists’ ears. Many looked at yesterday’s news and shrugged off warnings of a recession.

Sh. Don’t say that word.

Tell that to Bank of America and Deutsche Bank. They say a recession could come as soon as next year. But high consumer spending is a sign of strong economic health. And many think GDP itself could jump next quarter — even if the Federal Reserve raises interest rates as expected. Meanwhile inflation has Dems stressing. Because that's a talker no majority party wants in an election year.

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Dear Econ 101, we forgive you but can’t forget you. From COVID-19 to inflation, the economy’s giving us whiplash. But many say it’s not time to start panicking just yet.

PS: We’ve got tips on how to manage the economy’s ups and downs.

Welcome to our series on abortion rights and restrictions. theSkimm is tracking state actions in the lead-up to a landmark Supreme Court decision expected by July. Here’s the latest…

Yesterday, Oklahoma’s legislature approved a Texas-style bill that would ban abortions after six weeks. There is no exception for rape and incest. Like Texas, it also incentivizes citizens to sue anyone who performs or helps someone get an abortion. Gov. Kevin Stitt (R) is expected to sign it. 

The move comes weeks after the governor signed another anti-abortion bill, this one making it a felony to perform the procedure, punishable by up to 10 years in prison. Since January, hundreds of abortion restrictions have been intro'd in more than 40 states.

Here’s where states stand on abortion. A ruling from the Supreme Court on the fate of Roe v Wade is expected within three months.