The mainstream media and Democrats have been widely promoting the Inflation Reduction Act (IRA), which costs a whopping $740B, as the magical solution to resolving the current economic crisis.
Much of the crisis originated from ineffective Democrat policies in the first place, and their proposal to spend hundreds of billions in order to lower inflation demonstrates a clear disconnect from an understanding of basic economic forces.
After all, most generally do not spend their way to prosperity.
Unsurprisingly, the Congressional Budget Office (CBO) released a report that determined the IRA proposal would have a marginal to negative influence on inflation.
CBO Director Phillip Swagel argued that inflation will likely be either 0.1 percent higher or 0.1 percent lower in 2023, under the proposed bill relative to current law.
The Tax Foundation also weighed in on the bill, criticizing its likely negative impact for most: “The bill worsens inflation, especially in the first two years, as revenue raisers take time to ramp up and the deficit increases,” the organization warns, adding that the plan will likely entail the increase of budget deficits.
“On balance, the long-run impact on inflation is particularly uncertain,” the Tax Foundation continued, “but likely close to zero.”
On the other hand, Senate Majority Leader Chuck Schumer has been gloating about the “elation” Democrats feel upon passing the massive bill in a 51-50 vote, with Vice President Kamala Harris casting the tiebreaking vote.
“As you know, it’s been a long, tough and winding road,” Schumer brayed at a press conference, “at last, we’ve arrived; and we are elated.”
The senator proceeded to compare the bill to a world-changing force, exemplifying the typical bravado the swamp has become notorious for.
“Every member of my caucus is elated about what happened,” Schumer boasted, “because we really would change the world in a way that you rarely get an opportunity to do that.”