Several Republicans are sounding the alarm on Democrats proposed “Inflation Reduction Act,” claiming that it will only make the nation’s economy worse, and experts are ringing that to be true.
Contrary to its name, over 200 economists are arguing that the “Inflation Reduction Act” will actually burden the U.S., making the economy worse off than it is now.
In a letter to the House and Senate leadership, experts said that the U.S. economy is already at a “dangerous crossroad” and passing the bill would put the country in serious risk.
“[The act] inaptly named ‘Inflation Reduction Act of 2022’ would do nothing of the sort and instead would perpetuate the same fiscal policy errors that have helped precipitate the current troubling economic climate,” the letter read.
The group of economists also claimed that the $433 billion in proposed government spending “would create immediate inflationary pressures by boosting demand, while the supply-side tax hikes would constrain supply by discouraging investment and draining the private sector of much-needed resources.”
Last week, Sen. Joe Manchin (D-W.VA) announced that he and his fellow Democrat colleague Senate Majority Leader Chuck Schumer (D-N.Y.) reached an agreement on a $739 billion reconciliation package.
The letter states that Manchin’s bill is a “misleading label” and would do just the “opposite effect” of what they say it will for inflation.
However, the economists did acknowledge that there is an “urgent” need to address inflation.
Regarding the bill’s prescription drug provisions, the letter claims that it will “impose price controls that threaten healthcare innovation, creating a human health toll that would add to the financial woes that Americans are already experiencing.”
Sen. John Thune (R-S.D), pointed out that the last thing Democrats should do is raise taxes and increase spending, which is what the bill does.
He expressed his hope that more Democrats will soon come to the realization that the bill is “just a really bad bill,” saying that not one Republican in the Senate will