Among the plethora of dishonest tricks in the Democrat Party’s Big fat bags of lies and fraudulent activityIs intentionally misnaming a piece of legislation–a federal program and anything else they find necessary, solely for the purpose of exploiting and pandering to low-information voters.
The story starts with Joe Manchin, West Virginia Democrat. This ends with Manchin — except for a Penn Wharton Budget Model that just poured water all over the Democrat-claimed disinflationary effects of a compromise agreement between Manchin and New York Senate Majority Leader Chuck Schumer on a critical reconciliation bill — two weeks after Manchin abruptly pulled the plug on similar talks with Chucky.
Schumer, Manchin and the 675 were unveiled by Schumer this week BillionsInflation Reduction Act is claimed to combat climate change. You can find out more Anything about projected government spending in the Democrats’ Planet Looney Tunes Green New Deal, the federal budget deficit, inflation, and the economy as a whole, you also know there’s no way in hell the laughably-named Inflation Reduction Act can do everything Schumer and Manchin claimed it would — and reduce inflation at the same time.
Translation simplified:It is unlikely.
How bad is that? Breitbart Economics and Finance Editor John Carney called it a “brazen lie.”
“Actually, it’s likely to Increase inflation a bit in the near term,” he predicted.
This supposedly revolutionary legislative achievement that brought together Senator Joe Manchin (D–WV), and Senate Majority leader Chuck Schumer (D–NY) after months-long negotiations over Build Back Better was labeled a counter to the budget deficit. It makes political sense because inflation, which is the biggest problem facing American families, is driving the economy into a recessionary stagflation.
This bill contains a huge increase in government spending, which is a sign that it isn’t going to reduce inflation. According to the non-partisan Committee for a Responsible Budget, there are approximately $385 billion of energy and climate change spending. New spending of $100 billion is being made for healthcare in the form expanded Obamacare subsidy and expanded vaccine and prescription drug coverage.
Carney summarized the Democrat sham with an abbreviated version of Inflation 101: more government spending on top of an already out-of-control federal budget will increase demand for goods and services in the economy, but will not increase overall supply — particularly in the near term.
This new spending measure, added to the already large government budget will increase the aggregate economy demand. While they may be able to increase supply for some services and goods, it is unlikely that this will increase overall supply. Subventions for green energy, clean manufacturing tax credits and other subsidies will instead shift supply sources but not lead to a net rise.
It proposes to cut the deficit through tax increases and control drug costs. These measures, according to the Committee for a Responsible Budget, will result in revenue and cost savings of approximately $470 billion. Unfortunately, inflation is not likely to be reduced by any of these measures.
“In short, it is not enough to reduce the budget deficit if you want to reduce inflation,” Carney observed. “You have to reduce the right kind of spending or raise taxes in ways that reduce the private sector’s spending. This bill does nothing even close to either.”
Amen. Lest you skeptically wonder if I agree with Carney and he agrees with me, solely because we’re conservatives, fear not: The Penn Wharton Budget modelThe nonpartisan initiative for public policy is also in agreement.
The UPenn Wharton budget model estimates the so-called “Inflation Reduction Act” would NOT reduce inflation.
In fact, Senator Manchin’s favorite economists estimate it would actually increase inflation through 2023.
Um, Joe? What — Schumer got your tongue?
#NEW: The UPenn @Wharton budget model estimates the so-called “Inflation Reduction Act” would NOT reduce inflation.
It would, in fact, increase inflation by 2023 according to Senator Manchin’s favourite economists.https://t.co/yqW8nrDFg3
— Financial Services GOP (@FinancialCmte) July 29, 2022
Shocked? Please.
Penn Wharton Budget Model projects that Inflation Reduction Act could reduce non-interest cumulative deficits to $248 billion in the budget window. no impact on GDP in 2031.
It is important to understand the inflation impact. Statistics are statistically undistinguishable between zero and one.Another example is where Affordable Care act subsidies are made permanent. This illustrative scenario presents the 10-year deficit reduction estimated. Falling to $89 Billion
Penn Wharton’s Key Points
- PWBM projects that Inflation Reduction Act as it stands would decrease cumulative deficits by $248 Billion over the budget window.
- This Act will increase inflation slightly until 2024, and then decrease it thereafter. The point estimates given are statistically comparable to zero and indicate low confidence that legislation will affect inflation.
- *Our projections for GDP growth of 0.2% by 2050 and no effect on GDP in 2031 are both positive. These numbers include carbon reduction and the effect on capital and supply of labor distortions caused by rising tax rates.
- The Inflation Reduction Act includes a sunset provision for Affordable Care Act (ACA), subsidies at 2025. If that provision were extended indefinitely as an illustration, then the estimated 10-year deficit reduction amount falls to $89 Billion. Through 2040, the impact on GDP will remain zero.
Let’s get to the bottom of it:
If visions of Barack “If You Like Your Plan, You Keep Your Plan” Obama are dancing around in your head, right now, you’re not alone. Not only did that quote garner a few “Lie of the Year” awards for Chicago Jesus Obama; he also lied his ass off about “keeping” your doctor and hospital, while also boasting (lying) that the average family’s “Affordable” Care Act premium would decrease by $2,500 in the first year; premiums instead Increased by roughly $3,000 in the plan’s second year.
More of the same can be found in the dishonestly-titled Inflation Reduction Act. Why is it that so many continue to purchase Democrat crocks of crap after Democrat crocks of crap?
It is because, just as it is on each side of the aisle: For those who believe there is no need for proof. For those who don’t believe, no proof is possible.
That P.T. The Barnum thing.
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