230 Economists Warn US Government’s Inflation Reduction Bill Will Fuel Inflation – Economy Bitcoin News

Last week, Democrats unveiled climate and health care legislation called the “Inflation Reduction Act,” and there is much debate over the name of the proposed public policy measures. After the legislation was revealed, 230 economists sent a letter to the leaders of the country’s House and Senate warning that the proposed policies will actually fuel inflation. The letter stresses that there is an urgent need to curb US inflationary pressures, but also notes that “‘Inflation Reduction Act of 2022’ is a misleading label applied to a bill that would likely have the exact opposite effect.”

230 economists tell House and Senate leaders that proposed climate and health care legislation is not a good idea as the US faces “dangerous crossroads”

Inflation was high in 2022 and the Federal Reserve tried to stem the problem by raising the federal funds rate. There has been much debate as to whether or not the United States is in recession after two consecutive quarters of negative gross domestic product (GDP) growth. There was some positive news on Friday, as the latest job in the US reports indicated that 528,000 jobs were added in July and unemployment figures slipped to pre-pandemic levels.

Between the Ukraine-Russia war, tensions between China and Taiwan, and a gloomy global economy, US Democrats have introduced new legislation to tackle climate change and health care called the Inflation Reduction Act. Democrats say the legislation “will make a historic down payment on deficit reduction to fight inflation”. The $ 739 billion package of the inflation reduction bill recently got the green light from US politicians Joe Manchin and Chuck Schumer. Democratic Senator from Arizona Kyrsten Sinema was the last to show support for the proposed climate and health care legislation.

The politicians sponsoring the initiative also insist that the policies “will invest in the production and production of domestic energy and reduce carbon emissions by about 40% by 2030”. The act will be voted on on Saturday and many people find the label of the legislation to be inaccurate and misleading. In fact, 230 economists wrote a letter to 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 facing supply-demand imbalances, residual effects of stimuli, labor shortages and supply chain disruptions, this bill would aggravate rather than alleviate many of these problems,” the letter states. . The letter from the economists at the top of the Chamber and Senate adds:

Specifically, its $ 433 billion of proposed public spending would create immediate inflationary pressures by increasing demand, which supply-side tax hikes would restrict supply by discouraging investments that drain the private sector of much-needed resources. .

Redditors of r / Economy Subreddit openly fakes analysis by Global Warming Advocacy Group which claims that the law on reducing inflation will help Americans save money

Of course, Democrats, left-wing media publications, and nonprofit think tanks have argued that the Inflation Reduction Act would reduce inflation and presumably lead to savings. A Yahoo Finance article written by Akiko Fujita attempts to show that the bill will help Americans save money by citing a new analysis published by the non-profit group Rewiring America.

The 501 (c) (3) Rewiring America is a global warming advocacy group run by Arabella Advisors. Arabella, a Washington, DC-based for-profit consulting firm, controls the Sixteen Thirty Fund, the New Venture Fund, the Hopewell Fund and the Windward Fund. Arabella itself was founded by former Clinton administration officer Eric Kessler.

Although the analysis claims that the Inflation Reduction Act could lead to $ 1,800 in savings for the average household, a significant majority of the r / economy subreddit’s Redditor disagreed with Rewiring America’s claims. One person cited Rewiring America’s modern home installation requirements and remarked, “How the fuck can a low-income family afford them?” The person who published the article on r / economy responded to the individual by saying that it was “typical government idiocy”. The Redditor added:

The whole green movement is a cash grab for this generation.

Many other Redditors have discussed how politicians have an “above average” point of view when it comes to what is perceived as “low income” in the United States. “Just scrolling through the article shows that the ‘$ 1,800’ savings the average family would get are actually tax breaks for low-income families to install more efficient electrical equipment. Is this a joke? ”Asked another Redditor.

“Unfortunately for us, it’s not a joke,” wrote the thread’s author in response to the joking question.

Republican senators have made it clear that Joe Manchin and Chuck Schumer’s Inflation Reduction Act reform agreement will not gain traction from the right-wing party. “Senator Manchin, if you think you are getting 60 votes to get the sweeteners that cannot be done in reconciliation, you have to think long and hard about what you are doing,” Senator Lindsey Graham (RS.C.) wrote on Friday.

Tag in this story

230 economists, Akiko Fujita, Arabella Advisors, Biden Administration, bill, Chuck Schumer, debate, Democrats, economics, economist, economists, Eric Kessler, inflation, Inflation Reduction Act, kevin mccarthy, labor shortage, Lindsey Graham, low income , low income families, Mitch McConnell, Nancy Pelosi, Proposed Policy, r / Economy, Recession, Redditors, Rewiring America, stimulus, subReddit, us politicians

What do you think of the letter that 230 economists sent to the leaders of the House and Senate on the proposed law on reducing inflation? Let us know your thoughts on this topic in the comment section below.

Jamie Redman

Jamie Redman is the News Lead of Bitcoin.com News and a financial technology journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for Bitcoin.com News on the disruptive protocols emerging today.

Image credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, nor a recommendation or endorsement of products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or allegedly caused by or in connection with the use or reliance on any content, goods or services mentioned in this article.

Leave a Reply