The White House acknowledged this week that, if passed, the Inflation Reduction Act currently being negotiated in the Senate would likely not deliver a major impact to consumers for at least
a decade or so.
The White House echoed a prediction by Moody’s Analytics chief economist, Mark Zandi, who noted that consumers will likely not feel much relief from the Inflation Reduction Bill immediately,
but over the next decade the bill will make a big impact.
“Through the middle of this decade the impact of the legislation on inflation is marginal, but it becomes more meaningful later in the decade,” said Zandi. The Moody analysis concluded the Act would reduce inflation in the immediate by about .33 percent by 2031.
Shortly after Zandi’s statement was released, Senior Economics Advisor to the National Economics Council Jesse Lee Tweeted in agreement, saying, “This is actually the overwhelming
Critics of the bill seized the opportunity to point out what they perceive are flaws in the Act. A scathing op-ed by the New York Post editorial board slammed the Democrats for what they say is “another cut-down version of the Build Back Better package.”
The op-ed goes on to say, “The closest thing to an inflation-fighter in there is a bid to impose price controls on prescription drugs — whose prices are rising slower than almost anything else these days.”
Critics also fear the climate change portion of the bill will end up costing US consumers more in the short-term, as increased environmental legislation seeks to shift from fossil fuels, which will make it more expensive.
An op-ed in the Washington Post summarized the Act’s failings,
saying, “By all means, Democrats should vote for the measure thanks to all the varied, positive aspects of the bill. But both Democrats and Republicans should level with the public: Just because it has “inflation reduction” in its title does not mean it will do much to ease — let alone worsen — inflation.”
ARTICLE: LAURA SPIVAK
MANAGING EDITOR: CARSON CHOATE
PHOTO CREDITS: NEW YORK POST
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