The U.S. is now officially in a recession, according to the Bureau of Economic Analysis. Real GDP growth has decreased for two consecutive quarters, with the most recent data showing a decline of 0.9 percent. Experts at the Texas Public Policy Foundation have proposed a course of action for government at all levels to adapt to the worsening economic situation to protect Americans.

“Americans are struggling in the Biden economy,” said TPPF’s Chief Economist Vance Ginn. “Consumer expectations about the economy have dropped to the lowest in nearly a decade. Small business sentiment is at a 48-year low. Even as the Biden administration is stuck on how to define a ‘recession,’ Americans feel this depressed economy. This stagflation on steroids hasn’t been seen in a generation and it is the direct result of the economic policy disaster coming out of D.C. Instead of increasing corporate welfare, raising the national debt, and likely driving inflation higher, the answer should be to reduce the cost of doing business by reducing spending and eliminating job-killing regulations, which is a proven recipe for prosperity.”

The recession should send a signal to state and local governments across the country to adopt strong pro-growth and low tax policies.

“The worst thing any government can do during a recession is raise taxes,” says James Quintero, TPPF’s Policy Director for the Government for the People campaign. “It inflicts economic pain and slows recovery. That is true at the federal, state, and local government levels. Local elected officials should exercise particular caution as most are considering their tax rates for the upcoming fiscal year. All local governments should adopt the no-new-revenue tax rate so as to avoid increasing the tax burden on struggling Texans at this time.”