230 Economists Warn US Government’s Proposed Inflation Cut Law Will Fuel Inflation – Bitcoin Economics News

Last week, Democrats unveiled climate and healthcare legislation called the Inflation Cuts Act, and there is a lot of controversy over the name of the proposed policy measures. After the legislation was unveiled, 230 economists sent a letter to the nation’s House and Senate leaders warning that the proposed policies would in fact increase inflation. The letter stresses that there is an urgent need to reduce inflationary pressures in America, but also notes that the “Inflation Reduction Act of 2022” is a misleading label applied to a bill likely to achieve exactly the opposite effect.

230 economists tell House and Senate leaders proposed climate and healthcare legislation is not a good idea as the US faces a ‘dangerous crossroads’

Inflation was high in 2022 and the Fed is trying to curb the problem by raising the federal funds rate. There has been much debate about whether or not the US is in recession after two consecutive quarters of negative GDP growth. On Friday, there was some positive news, such as the latest US jobs report shown 528,000 jobs were added in July and unemployment data fell to pre-pandemic levels.

Amid the Ukraine-Russia war, tensions between China and Taiwan, and a bleak global economy, US Democrats introduced new legislation to tackle climate change and health care called the Inflation Reduction Act. Democrats Claim The legislation “will provide a historic down payment to reduce the deficit to combat inflation.” The $739 billion Inflation Reduction Act package recently got the green light from US politicians Joe Manchin and Chuck Schumer. Arizona Democratic Senator Kirsten Sinema Last to show support for proposed climate and healthcare legislation.

Politicians sponsoring the initiative also insist that the policies “will invest in domestic energy production and manufacturing, and reduce carbon emissions by nearly 40 percent by 2030.” The law will be voted on on Saturday and many people believe that naming the legislation is inaccurate and misleading. In fact, 230 economics wrote a letter To Chuck Schumer, Mitch McConnell, Nancy Pelosi, and Kevin McCarthy to tell them the bill would raise inflation.

The letter states that “at a time when the economy is already facing supply and demand imbalances, residual effects of stimulus, labor shortages, and supply chain disruptions, this law will complicate rather than alleviate many of these problems.” The economists’ letter to the House and Senate adds:

In particular, the proposed government spending of $433 billion would create immediate inflationary pressures by increasing demand, which would cause supply-side tax increases to constrain supply by discouraging investment that drains the private sector of resources that are in urgently needed.

Redditors from the r/Economy Subreddit A candid analysis by the global warming advocacy group that claims the Inflation Control Act will help Americans save money

Of course, Democrats, left-leaning media publications, and non-profit think tanks have stated that the Inflation Cut Act would reduce inflation and claim it would lead to savings. Yahoo Finance Article – Commodity Written by Akiko Fujita attempts to prove that the bill will help Americans save money by citing a new analysis Published by the non-profit group Rewiring America.

501(c)(3) Rewiring America is a global warming advocacy group run by Arabella Advisors. The Washington, DC-based for-profit advisory firm Arabella controls Sixteen Thirty Fund, New Venture Fund, Hopewell Fund and Windward Fund. Arabella itself was founded by former Clinton administration appointee Eric Kessler.

While the analysis confirms that the Inflation Control Act could save the average family $1,800, the vast majority of Redditors from the subreddit r/Economy did not agree With the reconnection of America’s claims. One person relayed the modern home installation requirements for Rewiring America, and compressed: “How can a low-income family afford this?” The person who published the article on r / economics replied One might say it is “typical government folly”. Redditor added:

The whole green movement is a money grab for this generation.

Many other Redditors discuss How politicians have an “above average” view when it comes to what is perceived as “low income” in the United States. “Just browsing the article makes it clear that the savings the average ‘$1,800’ family would have are actually tax breaks for low-income families to install more efficient electrical equipment. Is this a joke?” Another Radiator Requested.

“Unfortunately for us, this is not a joke,” the author of the thread Wrote In response to a joke question.

Republican Senators explain it The inflation-reduction reform package of Joe Manchin and Chuck Schumer will not win favor with the right-leaning party. “Senator Manchin, if you think you’re going to get 60 votes for the sweeteners that can’t be done in reconciliation, you need to think hard and hard about what you’re doing,” Senator Lindsey Graham (RS). ) wrote on Friday.

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What do you think of the message 230 economists sent to House and Senate leaders about the proposed inflation-reduction law? Tell us your thoughts on this topic in the comments section below.

Jimmy Redman

Jamie Redman is the head of news at Bitcoin.com News and a technology financial journalist based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code, and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for Bitcoin.com News about the disruptive protocols emerging today.

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