Newsflash–increasing government spending during already inflationary times will inevitably increase inflation. It was therefore a surprise that Joe Manchin, a Democrat from West Virginia, who has been speaking tough on economic issues in recent years, agreed to a tax-hiking and union-loving “Inflation Reduction Act”, which will not do anything of the kind.
California is where bills are sometimes called one thing and do another. In 2014, the “Safe Neighborhoods and Schools Act” or the Golden State’s absurdly-titled “Safe Neighborhoods and Schools Act” changed many felonies into misdemeanors and made our communities more dangerous.
Democrats are celebrating this bill and calling it the “savior of Biden’s presidency”. But, cold-eyed economists have some facts to share: The “Inflation Reduction Act” will almost certainly increase inflation despite its title.
230 economists sent a letter to Congress and the Senate arguing that Manchin Schumer’s bill was misleading and that the country is at a crossroads.
The “inflation relief act of 2022” will not accomplish anything. It would continue the fiscal policies that led to the current economic crisis.
Who would’ve thought?
My daughter is an economics major. It’s embarrassing to admit that I don’t understand many of her complex calculations and charts, I admit I’m out of my league. But I don’t think I need to be an econ major to know that more government spending and increased taxes are not a great idea right now while we’re in a recession and inflation is at an all-time high. The economists continue:
Experts in economics point out that the $433 billion in proposed government spending is too high. This would increase demand, creating inflationary pressures. The supply-side tax increases would reduce supply by encouraging investment and draining the private sector of much-needed resources.
Vernon Smith, Nobel laureate and former Chair of Council of Economic Advisers Kevin Hassett, and former Director of Office of Management and Budget Jim Miller signed the August 3 letter. Robert Heller, former president of the Federal Reserve Board signed the letter.
Chuck Schumer refused to accept this reality. On Thursday, he tried to persuade him from the Senate floor.
Inflation Reduction Act will lower inflation and prescription drug prices. It closes loopholes that have been exploited by large businesses that pay little to no taxes in the past.
Chuck, we think you are crazy. He has a letter signed by 130 economists, claiming that the act “satisfies working families’ needs” and will ensure greater, longer-lasting economic growth in the coming years. Senator Minority Leader Mitch McConnell disagreed and stated in a statement:
Democrats are completely out of touch and insensitive to American families needs. This is also apparent in their reckless spending habits and taxation.
Krysten Silena, a Democrat from Arizona, has apparently joined the board. The vote will be largely partisan. The outcome will be decided by Kamala Harris (a noted economist) in Senate tiebreaking vote.
I was foolish to think that Sinema or Manchin would be our bulwarks in the face of Leftist lunacy. Both had blocked the $3 trillion Build Back Better Act which is ridiculously expensive and steadfastly opposed the elimination of the filibuster.
They seem to have given up, possibly to regain the goodwill of Chuck Schumer, Nancy Pelosi, and their ilk. When your gasoline and grocery bills keep rising, we’ll all be paying the price.
