Buffoonery: Paul Krugman Suggests Dems May ‘Save’ Civilization with Insane Inflation Bill

New York Times Paul Krugman pretends to be an expert on climate change, since his record in economics regarding inflation is terrible. Now, he’s celebrating Democrat senators for allegedly trying to “save” civilization from a supposed eco-disaster with their $740 billion Inflation Reduction Act, projected to worsen inflation.

The legislation is being considered by the Democrat-controlled House of Representatives.

Krugman was tickled pink in his latest drivel headlined: “Did Democrats Just Save Civilization?” In the lead of the story, he fawned: “They really did it.” He continued: “This is a very big deal. The act isn’t, by itself, enough to avert climate disaster. But it is a huge step in the right direction and sets the stage for more action in the years ahead.” That’s despite the fact that “the bill worsens inflation by constraining the productive capacity of the economy,” the Tax Foundation analyzed. The Guardian reported the bill would give a whopping “$369bn to reduce America’s greenhouse gas emissions and invest in renewable energy sources.” That’s despite inflation remainingAt 40-year records and an economy that contracts in 2 consecutive quarters, to qualify as a recession.  

It’s not surprising that Krugman is wielding climate propaganda to gin up hopes that more spending will somehow reduce emissions:

Each Republican Senator was ready to sacrifice our best chance to avoid climate catastrophe, just to give the Biden Administration a victory.

Krugman sang, forget all the negatives. “[A]ctual experts on energy and the environment are giddy over what has been accomplished, and serious economists aren’t worried about the effect on inflation.” 

Of course the “serious economist” Krugman wouldn’t worry too much about the IRA’s effect on inflation, since he spent the most of Biden’s tenure in office promoting the false notion that skyrocketing inflation would be “transitory” and that President Joe Biden’s asinine $1.9 trillion stimulus package wouldn’t be inflationary. He even penned a mea culpa in July kicking himself for those awful takes: “I Was Wrong About Inflation.” 

But Krugman tells readers to “forget” whether the $1.9 trillion stimulus he promoted actually juiced the inflation crisis. “The key thing is to do the math,” Krugman said. “The Inflation Reduction Act calls for spending less than $500 billion over a decade, compared with the American Rescue Plan’s $1.9 trillion in a single year — and It will decrease the deficit. That’s why independent analysts find that it will have little effect on inflation.” 

But as with most of Krugman’s sordid Keynesian arguments, he’s being misleading. CATO Institute Director of Tax Policy Studies Chris Edwards pointed out that “[b]oth Tax Foundation and Penn‐​Wharton find that the Senate billActually, this would lead to a rise in deficits over the initial few years. and thus have the opposite effect on inflation as the ‘reduction’ promised by the bill’s title.”  [Emphasis added.]

As Edwards notes, “The reality is that the bill would likely increase deficits as new subsidies would beget more subsidies.” 

Krugman will take your place.

Conservatives are being attacked. Contact The New York Times at 800-698-4637 and demand it continue to distance itself from Krugman’s awful inflation predictions.

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