Pirate's Cove

More Economists: IRA Will Have Barely To No Effect On Reducing Inflation

August 24, 2022 – 10:30 am

Yeah, this is not a repeat of other articles on the negligible effect of the “Inflation Reduction Act”

Inflation Reduction Act ‘will have no measurable impact on inflation,’ economists say

President Biden recently signed the Inflation Reduction Act (IRA) into law with the goal of taming inflation and addressing climate, tax, and health care issues.

According to economists, however, the $430 billion price tag over the next 10 years is a hefty amount for what they consider to be marginal economic returns.

“Our preliminary analysis of the ‘Inflation Reduction Act’ (IRA), a climate, tax, and health-focused bill, shows it will boost the level of GDP by about 0.2%-0.3% by the end of 2031 and, despite its name, will have no measurable impact on inflation,” Oxford Economics economists wrote in a new note.

Though economists at Wells Fargo agreed that the IRA’s actual effect on inflation would be minimal.

“In our view, the IRA will not have a major impact on the outlook for the U.S. macroeconomy over the next year or two,” the economists wrote in a separate note. “A tightening of fiscal policy can be disinflationary by slowing aggregate demand growth. The IRA does impose some fiscal tightening, such as the 15% minimum tax on corporations’ financial statement income and the 1% excise tax on stock buybacks. However, these new taxes are relatively small, amounting to just 0.1% of GDP per year.”

Mostly, those who think it will have an itty bitty effect are looking at the Obamacare subsidies being renewed and possibly the reduction of some medicine prices going down from negotiation (which doesn’t kick in till 2026). None are mentioning anything about the essentials, like food, clothing, and energy going down even a tiny bit.

Still, when combined with the recently passed CHIPS and Science Act and the Bipartisan Infrastructure Law passed in 2021, the passage of the IRA marks “unprecedented, sizable investments in the climate agenda,” the economists added.

If the big Republican groups, such as the Senate Leadership Group and the National Republican Congressional Committee, and the GOP leadership as a whole, had any brains they would be incorporating this into their campaign talking points right now, just like the murder party is yammering about their support for abortion on demand, because the IRA won’t help the middle and working classes with inflation, and will probably increase their cost of energy, which will increase the cost of essential and non-essential goods and services.

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This entry was written by William Teach and posted on at 10:30 am and filed under Democrats, Economy. Bookmark the permalink. Follow any comments here with the RSS feed for this post.

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7 Responses to “More Economists: IRA Will Have Barely To No Effect On Reducing Inflation”

1. The catholic but not Catholic Elwood P. Dowd says:

   August 24, 2022 at 10:45 am

   Yet, inflation will continue to decrease.

   Gasoline will soon be under $3!

   • CarolAnn says:

     August 24, 2022 at 11:47 am

     If you believe inflation is decreasing just because gasoline prices creep down you need another economics course. Current inflation is about 10% even though the Pedo supporting agencies including the “non-partisan” CBO (completely controlled by leftists) claim otherwise.

     You can repeat anything you want since you’re an inflation denier and partisan liar but it won’t make it true. Though I would expect inflation to recede a bit since nobody is buying much.

   • Up Yours says:

     August 24, 2022 at 12:14 pm

     Is there no end to this fool Dowd?^^^

2. drowningpuppies says:

   August 24, 2022 at 11:23 am

   President Joe Biden is today expected to announce a student loan handout plan that would essentially use taxpayer money to pay off up to $10,000 of student debt per borrower making under $125,000 per year.

   That means Americans may be footing a nearly $300 billion bill if Biden goes through with the reported plan — plus extends a repayment pause to next year.

   Somehow Mumbles McShitpants thinks this money is his instead of the American taxpayers.
   America needs more debt to go along with 8.5% Bidenflation.
   
   #LetsGoBrandon
   

3. Dan says:

   August 24, 2022 at 12:46 pm

   The Inflation Reduction Act will have a huge impact on inflation. It will make it WORSE. DELIBERATELY.

4. Hairy says:

   August 24, 2022 at 2:10 pm

   What happened to the Red Wave of 2022?
   Was it killed by the end of abortion? That is what it looks like too me. Well that plus those zany Trump endorsed candidates.as of right now Sarah Palin is 13000 votes behind her Dem opponent in deep red Alaska
   The winner will be determined after all the ranked 2nd place votes ste counted
   Dan, do you feel that Biden is also responsible for the world wide inflation? Or just the inflation here ?

5. drowningpuppies says:

   August 24, 2022 at 2:46 pm

   “Student loan ‘forgiveness’ is a massive debt transfer from the working class, including blue collar and minority workers, to disproportionately upper income people,” said Kristin Tate, a columnist at The Hill and a fellow at Independent Women’s Voice. “The Democrats have become desperate ahead of the midterms and realize they cannot run on their track record of failures – this is their last ditch effort to ‘buy’ the votes of young people.”

   https://www.foxnews.com/politics/strategists-warn-midterm-ramifications-biden-announces-plan-forgive-300-billion-student-debt

   Thank you, Mumbles McShitpants.
   Blue collar families welcome giving away tax money during a recession.
   
   https://www.foxnews.com/politics/strategists-warn-midterm-ramifications-biden-announces-plan-forgive-300-billion-student-debt
   
   #8.5%Bidenflation
   #UkraineNeedsMoreBillion$$$