Last week, Democrats unveiled a climate and health bill called the “Cut Inflation Act” and there’s a lot of controversy over the name of the proposed government policy. After the law was promulgated, 230 economists sent a letter to the leaders of the country’s House of Representatives and Senate, warning that the proposed policy would actually fuel inflation. The letter emphasizes that there is an urgent need to curb inflationary pressures in America, but further notes that the “Inflation Reduction Act of 2022” is a misleading label applied to the bill that is likely to have the exact opposite effect.
230 Economists Tell House and Senate Leaders Proposed Climate and Health Act Is a Bad Idea as US Stands at ‘Dangerous Crossroads’
Inflation was high in 2022, and the Federal Reserve is trying to solve this problem by raising the federal funds rate. There has been much debate about whether the US is in recession after two consecutive quarters of negative gross domestic product (GDP) growth. There was some positive news on Friday as the latest US jobs report indicated that 528,000 jobs were added in July and unemployment data fell to pre-pandemic levels.
The Inflation Reduction Act will not only be the largest investment in clean energy and America’s energy security in history.
It will also be the largest investment in US manufacturing.
— President Biden (@POTUS) August 4, 2022
Amid the Ukrainian-Russian war, tensions between China and Taiwan, and a gloomy global economy, US Democrats have introduced a new climate change and health care bill called the Inflation Reduction Act. democrats demand that the law “will make a historic down payment to reduce the deficit to fight inflation”. The $739 billion Inflation Reduction Act package was recently given the green light by US politicians Joe Manchin and Chuck Schumer. Arizona Democratic Senator Kirsten Sinema was the last one to support for proposed climate and health legislation.
Just like I predicted #Inflation The “cut” law will not eliminate the loophole in the interest tax. One thing #democrats care more than taxing billionaires to get their campaign donations. https://t.co/OMZMTALZRd
— Peter Schiff (@PeterSchiff) August 5, 2022
The politicians sponsoring the initiative also insist that the policy will “invest in domestic and energy production and reduce carbon emissions by about 40 percent by 2030.” The vote on the law will take place on Saturday, and many people believe that the label of the law is inaccurate and misleading. In fact, 230 economists wrote a letter Chuck Schumer, Mitch McConnell, Nancy Pelosi and Kevin McCarthy to tell them the bill would increase inflation.
“At a time when the economy is already grappling with supply-demand imbalances, residual stimulus effects, labor shortages and supply chain disruptions, this bill will exacerbate, not alleviate, many of these problems,” the letter said. The Economists’ letter to House and Senate leaders added:
In particular, its estimated $433 billion in government spending will create immediate inflationary pressures by boosting demand, while raising supply-side taxes will restrict supply, discouraging investment that drains the private sector of much-needed resources.
Reddits from the r/Economy Subreddit openly ridicule the Global Warming Advocacy Group’s analysis that claims the Inflation Reduction Act will help Americans save money
Of course, Democrats, left-wing media outlets, and non-profit think tanks have claimed that the Inflation Reduction Act would reduce inflation and ostensibly lead to savings. Yahoo Finance article Akiko Fujita is trying to prove that the bill will help Americans save money, citing new analysis published by the non-profit group Rewiring America.
It has never felt more 1984 than 2022.
Inflation “may be temporary, but it will take several years for it to come down.”
“Recession” does not mean what we said.
The Inflation Reduction Act is a $739 pork barrel that is 50% climate change related and taxes the working class.
— Occupy the Fed Movement (@OccupytheFeds) August 5, 2022
501(c)(3) Rewiring America is a global warming advocacy group operated by Arabella Advisors. Washington, D.C.-based commercial consulting firm Arabella oversees the Sixteen Thirty Fund, New Venture Fund, Hopewell Fund, and Windward Fund. Arabella itself was founded by former Clinton administration appointee Eric Kessler.
The “Inflation Reduction Act” is also a “Tax Raise Act”. pic.twitter.com/99tJZTTWrH
— zero hedge (@zerohedge) August 4, 2022
While the analysis claims that the Inflation Reduction Act could result in $1,800 savings for the average household, the vast majority of Reddit users from the r/economy subreddit disagree with Rewiring America claims. One person cited Rewiring America’s requirements for a modern home setup, and emphasized“How the hell can a low-income family afford this?” The person who posted the article to r/economy answered man, saying that this was “typical government idiocy.” The redditor added:
The whole green movement is a money grab for this generation.
Many other redditors discussed how politicians have an “above average” point of view when it comes to what is considered “low income” in the United States. “Just a cursory glance at the article reveals that the “$1,800” savings the average household will “receive” are actually tax credits for low-income families to install more efficient electrical equipment. Is this a joke?” another redditor asked.
“Unfortunately for us, this is not a joke,” wrote the author of the thread. wrote in response to a joke question.
Republican Senators made it clear that Joe Manchin and Chuck Schumer’s deal to reform the Inflation Reduction Act would not win support from the right-wing party. “Senator Manchin, if you think you’re going to get 60 votes to get sweeteners that can’t be done at reconciliation, you need to think long and hard about what you’re doing,” Senator Lindsey Graham (RS.C.) wrote on Friday.
What do you think of the letter from 230 economists to House and Senate leaders about the proposed Inflation Reduction Act? Let us know your thoughts on this in the comments section below.
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