Democrat ‘Inflation Reduction Act’ Could Slightly Increase Inflation Over Next Two Years, Study Finds | Eastern North Carolina Now | The Democrat-supported “Inflation Reduction Act of 2022” could lead to a slight increase in inflation over the next two years if it’s passed and signed into law, according to a Penn Wharton study released Friday.

Coronavirus Disease 2019 (COVID-19)
    Publisher's Note: This post appears here courtesy of the The Daily Wire. The author of this post is Zach Jewell.

    The Democrat-supported "Inflation Reduction Act of 2022" could lead to a slight increase in inflation over the next two years if it's passed and signed into law, according to a Penn Wharton study released Friday.

    Penn Wharton analyzed the massive spending package that reached a shocking agreement between Sen. Joe Manchin (D-WV) and Senate Majority Leader Chuck Schumer (D-NY) on Wednesday. The study came to a dismal conclusion for Democrats, and even found that the bill could do the exact opposite of what its name suggests through 2024.

    "The Act would very slightly increase inflation until 2024 and decrease inflation thereafter. These point estimates are statistically indistinguishable from zero, thereby indicating low confidence that the legislation will have any impact on inflation," the Penn Wharton Budget Model found.

    According to the study, inflation could rise by 0.05% over the next two years before a marginal drop of 0.25% "by the late 2020s," rendering the spending package basically ineffective at accomplishing its purpose.

    The Penn Wharton findings were released the same day that new data from the Bureau of Economic Analysis (BEA) showed that the personal consumption expenditures (PCE) index, a key measure of inflation, increased 6.8% in June. That's the highest yearly increase since January 1982, marking troubling news for Americans as the economy officially entered a recession on Thursday.

    The Democrat spending package that gained surprising support from Manchin earlier this week would be the largest legislative climate investment the U.S. has ever made at $369 billion. The bill would also raise taxes on billion-dollar businesses and extend Affordable Care Act subsidies.

    In recent weeks, Manchin shot down Democrat attempts at pushing through President Joe Biden's agenda, and reportedly told Democratic leaders he would "unequivocally" refuse to support legislation related to climate change and tax increases.

    Manchin claims that reconciling with Democrats on this package will help the country fight inflation, but findings from the Penn Wharton Budget Model now bring that claim into question.

    "We must be honest about the economic reality America now faces if we want to avoid fanning the flames of inflation," Manchin said in a statement Wednesday. "At its core, the purpose of reconciliation is to get our economic and financial house in order. Contrary to foolish talk otherwise, America cannot spend its way out of debt or out of inflation."

    Leif Le Mahieu contributed to this report.

poll#154
Inarguably, the policies of the Democrats in congress and Joe Biden as the Executive is plunging the United States into a recession, if we are not already there; a recession that was completely avoidable. Will abrupt changes in policies occur in time?
  Yes, the Democrats have a bold plan, yet to be revealed, to save us.
  No, there will have to be a complete undoing of the damage done by these Democrats.
  I can't do simple math, so how am I to understand the concept of basic economics.
1,180 total vote(s)     What's your Opinion?

Go Back


Leave a Guest Comment

Your Name or Alias
Your Email Address ( your email address will not be published)
Enter Your Comment ( no code or urls allowed, text only please )




Gretchen Whitmer Promises She Will Fight To Keep Abortion Legal For ‘Your Kids’ Daily Wire, Guest Editorial, Editorials, Op-Ed & Politics Are Democrats weaponizing IRS against middle class?


HbAD0

Latest Op-Ed & Politics

Netherlands is world's second largest exporter of food by value
A new poll shows that Republican voters put Florida Governor Ron DeSantis at the top of deep list of politicians they want to see influence the party’s direction.
Davis Patterson, a bystander during a shooting that left a dozen dead, has been arrested for misgendering the shooter, Blake Jacobson, who is non-binary.
Twitter CEO Elon Musk announced a blanket amnesty for Twitter users permanently suspended from the platform.
With rising interest rates, experts expect the U.K. to remain in a recession into 2024
CNN host Alisyn Camerota and a guest on the network struggled with the gender non-conforming identity of the Colorado “Club Q” shooting suspect.
U.S. State Department officials defended themselves Sunday after awarding Ecuador a grant of over $20,000 for a cultural center to host drag shows for LGBTQ communities in the South American country.
The N.C. Home Builders Association is sharing its concerns about a recent court ruling against an Ashe County asphalt plant.
says schools are for education, not indoctrination

HbAD1

Former Trump administration economic adviser Larry Kudlow blasted President Joe Biden, accusing him of lying about the state of the economy.
President Joe Biden announced his intention to push for new gun control legislation in the lame-duck session of Congress.
Wondering why people actually still vote for Democrats? Believe it or not, there are still Democrat voters out there and we've compiled their top reasons for doing so!
Two NBA players were ejected from a game over the weekend after they engaged in a fight that ended up in the stands.
When I was a tenth grade student, I had the good fortune to have an English teacher named MS. Comer.
While Arizona’s handling of the midterm election has been the focus of media outlets and pundits for some time, California still has more than 250,000 uncounted ballots across the state.
At least two counties in Arizona have confirmed that their certification of the 2022 election will be delayed as the state’s attorney general’s office wrote a letter claiming there’s evidence of “statutory violations” that occurred in Maricopa County on Election Day.
In a shocking statement to police, Paul Pelosi claimed that he was assaulted by a man who threw hammers at him while shouting, "THIS IS MAGA COUNTRY!"

HbAD2

 
Back to Top