Democrat bill intended to reduce inflation would contribute to skyrocketing inflation

| August 5, 2022 | 11 Comments

This is a warning that a letter written by 230 economists warns about. These economists argue that instead of making things better as Biden and Democrats claim, it would actually skyrocket inflation and place burdens on the economy.

From Fox News:

The letter was sent to Schumer, Senate Minority Leader Mitch McConnell, R-Ky., House Speaker Nancy Pelosi, D-Calif., and House Minority Leader Kevin McCarthy, R-Calif.

Schumer has touted the Inflation Reduction Act as an immediate solution to inflation, which reached a new 40-year high last month.

“The Inflation Reduction Act will lower inflation, lower the costs of prescription drugs, close loopholes long exploited by big business who pay no or little taxes,” Schumer said Thursday on the Senate floor.

In addition, Biden urged Congress to pass the bill during a virtual roundtable Thursday. “My message to Congress is this: Listen to the American people,” he said.

“This is the strongest bill you can pass to lower inflation, continue to cut the deficit, reduce health care costs, tackle a climate crisis and promote America’s energy security and reduce the burdens facing working-class and middle-class families,” Biden continued.

However, Republicans are less enthusiastic about the more than $700 billion spending and tax package.

McCarthy told Fox News on Wednesday that “Democrats have no plans to solve all the problems they created” and Manchin’s bill is not the solution.

In the Senate, McConnell stated this week that most of his colleagues were “somewhat shocked” about Manchin’s reversal of previous positions. He continued, telling Fox News that the bill raises taxes and “calling it an inflation reduction bill is rather laughable.”

Fox News has the article here.

Category: Economy, Society

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Roh-Dog

It’s nothing but a grift. The heartbreaking details are in the subsequent tax years after 2022/23. Those families/individuals making “<$400k” are going to get the effect of trickle-down tax increases by a little mechanism, wait. What’s that thing called agains….?

INFLATION!!!

According to usafacts, “The median annual wage in 2021 in the US was $45,760, an increase of 9.08% or $3,801 from 2020.”

Which means with a CPI rate at 9.2% (which is a fking lie and they KNOW this) you’ve gotten a tax increase, regardless of your income bracket…ish.

Now, Uncle Scam has been tossing out stimmies like a drunk Infuntreeman for anyone with a hangnail or kids, which doesn’t actually help the supply/demand signals.

In fact, given the ill nature of the last couple… years? decade(s)? the past year, multiplied by this hunk of shit bill will absolutely create a bubble in everything it touches.

Need proof? A ‘$ unit’ paid later pays less than one ‘paid’ sooner, see bond mkt

Roh-Dog

Then you have crap like this headline:

Payrolls increased 528,000 in July, much better than expected in a sign of strength for jobs market — CNBC

The ‘number’ is a lie, told by liars, believed by fools. Those actually employed have never had this many jobs. Meaning, those that are working are working more than they ever have. There are multiple causes, most likely is outsized liabilities, or ‘one missed paycheck from ruin’.

Greatest Greatness of ALL TIMESEZ!!!

Here is chart. Love chart. It can’t hurt you… (at least not physically).

BLS CHART.png
KoB

Spot on, -Dog…ya nailed it. “…never underestimate Joe’s ability to f*ck things up.” All part of your Master’s Plan, Comrade. Move along, Citizen, the bread line will not be open today.

HT3

Smoke & Mirrors…
All Joe’s claims of increasing this and reducing that use 2020 as a baseline year which makes all of his claims bogus…
You can’t put 20M people out of work and then claim 9M new jobs when they come back to work…
You can’t claim the record drop in gas prices after it soared by 100% plus since your inauguration…
The deficit is not reduced when it happens to be lower than the record year after printing Trillions of dollars…
To quote Jyn Orso in Rogue One “Every day, more lies”

jeff LPH 3 63-66

I’m not good at math so I’ll not comment and read what comments come in.

MI Ranger

So I wonder if any of those Economists went to that school in Boston where Ms. AOC got her degree? Probably not, since they seem to actually understand what causes inflation!

The great thing about economists, is you can put ten of us in a room and get at least eleven differnet opinions about what is going to happen!!

Facts is facts, and the future is unpredictable… unless you are trying to predict it!

Andy11M

The only thing that fixes inflation is time and market forces.

rgr769

And with what this bill will actually do, we will have both a recession and stagflation, all through the next 12 to 18 months. Anyway, that is my prediction.

Roh-Dog

Gerald Celente is calling (as of NOV2021) for inflation in costs of living, decreasing wages and a general freeze to spending (aka dragflation).

I have a few disagreements with his theory of how it’ll play out, but generally I think he’s correct. Also his figures are slightly different, oh well:

U.S. median income… $69,178

Depends on what your definition of ‘is’ is… Even usdebtclock.org has another number.

Doctor Burry (of The Big Short fame) is calling for a whipsaw effect thru prices and employment in the next couple quarters to years. This seems to me the most likely, with commodities being generally the safe-haven for the duration.

full disclosure: I’m an idiot, don’t listen to me. I’m not a guy with a brohawk and a dream, just a loser with no self-esteem.

5JC

US Median Income has different numbers depending upon who you are trying to lie to.

The 2021 $45K number is all US workers, including kids and part timers. Better to do your own analysis, maybe start here.

https://en.wikipedia.org/wiki/Personal_income_in_the_United_States#:~:text=The%20Bureau%20of%20Labor%20Statistics,full%2Dtime%2C%20year%20round.

Maybe I get a 10% COLA jump this year. They can always just add another zero on to the bills.

Last edited 2 days ago by 5JC
Hack Stone

Hack Stone really hates when a politician mentions “loophole”. Gun show loophole. Tax loophole. Everything has a loophole. People are not violating any laws by utilizing a loophole. The politicians wrote the laws, which includes these “loopholes”. If they don’t like people using loopholes, don’t codify them by putting them in your legislation.

Also gettting tired of them bitching that “the rich don’t pay their fair share.” If they are really concerned about people paying their fair share, why don’t they go after people who owe money under existing tax laws. We’re looking at you, Al Sharpton and Hunter Biden.