Here’s how much the Inflation Reduction Act will reduce inflation by: zero.
Actually, it is likely to increase inflation a bit in the near term.
The supposedly game-changing legislative breakthrough that brought together Sen. Joe Manchin (D-WV) and Senate Majority Leader Chuck Schumer (D-NY) after months of negotiations over Build Back Better failed is cynically branded as a measure to counter the budget deficit. This makes sense in a crass political way because inflation is the number issue facing American families and is plunging the economy into a stagflationary recession.
The first hint that this is not going to be an inflation reducing piece of legislation is that the bill includes a massive expansion of government spending. There is roughly $385 billion in