230 Economists Warn the US Government’s Proposed Inflation Reduction Act Will Fuel Inflation – Economics Bitcoin News

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

230 Economists Tell House and Senate Leaders That the Proposed Climate and Health Care Legislation Is Not a Good Idea While the US Faces ‘Dangerous Crossroads’

High inflation has occurred in 2022. The Federal Reserve attempted to address the issue by raising its federal funds rate. There’s been a lot of debate over whether or not the U.S. is in a recession after two consecutive quarters of negative gross domestic product (GDP) growth. There was good news Friday as U.S. Jobs Report – the most recent – showed some optimism Please indicateIn July, 528,000 new jobs were created and the unemployment rate fell to levels pre-pandemic.

The Inflation Reduction Act, a new bill by the U.S. Democrats, was introduced to tackle climate change and improve health care amid the Ukraine-Russian war and tensions between China, Taiwan and China. Democrats claim that the legislation will “make a historic down payment on deficit reduction to fight inflation.” The $739 billion Inflation Reduction Act package recently got the green light from U.S. politicians Joe Manchin and Chuck Schumer. Kyrsten Silena (Arizona Democratic Senator) was the only one to back the climate-related legislation.

The politicians sponsoring the initiative also insist the policies will “invest in domestic energy production and manufacturing, and reduce carbon emissions by roughly 40 percent by 2030.” The act will be voted on Saturday and many people believe the legislation’s label is inaccurate and misleading. In fact, Chuck Schumer, Mitch McConnell and Nancy Pelosi received a letter from 230 economists stating that they believe the bill will increase inflation.

“At a time when the economy already faces supply/demand imbalances, the residual effects of stimulus, labor shortages, and supply chain disruptions, this bill would compound rather than alleviate many of these problems,” the letter states. The economists’ letter to the House and Senate leaders adds:

The $433 billion proposed for government spending will create inflation pressures immediately by driving demand. Supply-side tax increases would reduce supply, and the private sector would be less likely to invest in much-needed resources.

Redditors of r/Economy subreddit openly mock analysis by the Global Warming Advocacy Group that claims Inflation Relief Act will save Americans money

Democrats, left-leaning media and non-profit think-tanks have said that the Inflation Reduction Act will reduce inflation. Akiko Fujita, a Yahoo Finance writer, attempts to show that the bill can help Americans save money. She cites a non-profit organization called Rewiring America for the analysis.

Arabella Advisors is the manager of Rewiring America (501(c)(3)), a worldwide warming advocacy organization. Arabella, a Washington, D.C.-based consulting firm, controls the Sixteen Thirty Fund, New Venture Fund, Hopewell Fund, Windward Fund, as well as the New Venture Fund, New Venture Fund, Hopewell Fund, Hopewell Fund, & the Hopewell Fund. Eric Kessler (an ex-Clinton administration appointee) founded Arabella.

While the analysis asserts the Inflation Reduction Act could lead to $1,800 in savings for the average household, a significant majority of Redditors from the subreddit r/economy did not agree with Rewiring America’s claims. One person quoted Rewiring America’s modern home installation requirements, and stressed: “How the f*** can a low-income household afford these?” The person who posted the article to r/economy replied to the individual by saying it was “typical government idiocy.” The Redditor added:

For this generation, the entire green movement represents a cash grab.

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

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

Republican Senators have made it clear that Joe Manchin’s and Chuck Schumer’s Inflation Reduction Act reforms deal will not get traction from the right-leaning party. “Senator Manchin, if you think you’re gonna get 60 votes to get the sweeteners that can’t be done in reconciliation, you need to think long and hard about what you’re doing,” Senator Lindsey Graham (R-S.C.) wrote on Friday.

In this story, tags
Biden Administration, Bill, Chuck Schumer. Debate, Democrats. Economists. Akiko Fujita. Arabella Advisors. Biden Administration. Inflation, Inflation Reduction Act. kevin Mccarthy. Labor shortages. Lindsey Graham. Low income, low-income families. Mitch McConnell. Nancy Pelosi. Proposed Policy.

How did you feel about the Inflation Reduction Act proposal? We’d love to hear your opinions on this topic in the comment section.

Jamie Redman

Jamie Redman is the News Lead for Bitcoin.com News. He also lives in Florida and works as a journalist covering financial technology. Redman is an active participant in the cryptocurrency community from 2011. Redman is passionate about Bitcoin and open-source codes. Redman has contributed more than 5700 articles to Bitcoin.com News since September 2015. These articles are about disruptive protocols that are emerging.

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