Article

2022-08-04 Economy

Even Biden's Favorite Economist Says Inflation Reduction Act Won't Reduce Inflation

[Free Beacon] The $433 billion Inflation Reduction Act will have no meaningful impact on consumer costs, according to the economist President Joe Biden cites most often.

By the end of 2031, the latest Democratic reconciliation bill would shave just .33 percent from the Consumer Price Index, the traditional inflation metric, according to a report from Moody's Analytics chief economist Mark Zandi. The current CPI is 9.1 percent, the highest in over 40 years.

Zandi and his coauthors say the Inflation Reduction Act will only "nudge the economy and inflation in the right direction." And that conclusion strains the definition of "nudge." Americans will see no change in inflation due to the bill, the report states, until the third quarter of 2023—a .01 percent decrease.

Zandi's analysis is often shared by the White House or the president himself. During a February 2021 speech, Biden cited Zandi's work twice while pitching his economic agenda. In July of last year, Senate Majority Leader Chuck Schumer (D., N.Y.) called on lawmakers to read Zandi's favorable report on the bipartisan infrastructure bill.

But Zandi's latest findings have not deterred the White House. Both Chief of Staff Ron Klain and Deputy Press Secretary Andrew Bates retweeted a CNN reporter's tweet that quotes the report as saying the bill will "meaningfully address climate change and [reduce] the government's budget deficits."

The White House's celebration of the report signals how desperate they are to pass a budget reconciliation package before the midterm elections. Initially named "Build Back Better," the bill has seen a number of rebranding attempts as voters increasingly sour on Biden's presidency over the economic concerns.

Zandi and his coauthors conclude that the inflation reduction bill lowers consumer costs for some medications, something the White House highlighted, although they decline to specify the total savings. Moreover, the deflationary benefits from lower health costs, the authors write, do not kick in until "mid-decade."

Posted by Besoeker 2022-08-04 06:38|| || Front Page|| [11137 views ] Top

#1 We are already in a recession. Matters little what the Biden owned economists say.

And it's going to get worse. The big driver is fuel costs. Those costs are the long pole in the tent for the final pricing of everything we need to survive.

Posted by Besoeker 2022-08-04 06:44|| 2022-08-04 06:44|| Front Page Top

#2 Let's see, spend a few hundred billions printed out of thin air by the Federal Reserve to reduce inflation. Got it.

Posted by DooDahMan 2022-08-04 06:56|| 2022-08-04 06:56|| Front Page Top

#3 There will be no significant reduction in inflation until fuel costs come down.
The Fed can say nothing about that in their inflation kabuki dance because strangling investment home construction and car sales is meaningless.
Because fuel and food are burning everyone’s paycheck they don’t have money for cars and homes

Posted by Sock Puppet of Doom 2022-08-04 07:50|| 2022-08-04 07:50|| Front Page Top

#4 Ministry of Truth: Wikipedia Adds Editing Restrictions to ‘Protect’ Article on Recession

Posted by Skidmark 2022-08-04 08:31|| 2022-08-04 08:31|| Front Page Top

#5 It is the only thing the demoncrats know how to do. Spend more money and raise taxes.

Posted by DarthVader 2022-08-04 08:47|| 2022-08-04 08:47|| Front Page Top

#6 When told citizens had enough of Tax and Spend Chuck Schumer was asked what the Democrats would pivot to he said, "Spend and Tax".

Posted by Deacon Blues 2022-08-04 12:12|| 2022-08-04 12:12|| Front Page Top

#7 They're gonna burn him till he drops.

'Look at the facts!' Biden defends Inflation Reduction Act saying it WON'T raise taxes on anyone earning less than $400k – as he loudly clears throat and coughs during speech from COVID isolation

Posted by Skidmark 2022-08-04 15:55|| 2022-08-04 15:55|| Front Page Top

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