On Thursday, two important things happened. First, the United States officially entered a recession, and Sen. Joe Manchin (D-W.Va.) struck a deal with Senate Majority Leader Chuck Schumer (D-N.Y.) to support the Inflation Reduction Act of 2022. The Biden administration wants us to believe two things: 1) that the first thing didn’t happen, and 2) that the latter will actually do something about inflation.
Because they think we’re stupid. They think that by calling the legislation the Inflation Reduction Act, people will believe that this is actually what it is. But of course, that theory didn’t exactly work for the Build Back Better Act now, did it? Polls showed Americans weren’t in favor of Biden’s massive social spending plan, and for over a year, Manchin stood in the way of Biden and the Democrats getting what they wanted. But they finally got a deal by paring it down and slapping a new name on it. But does anyone actually believe that the Inflation Reduction Act will do anything about inflation?
Anyone? Anyone? Bueller? Bueller?
First, the Biden administration is finally admitting that inflation is “unacceptably high,” but they deny we’re in a recession. Experts have been warning of a looming recession for months now, and we’ve now had two consecutive quarters of negative GDP growth — the technical and objective definition of a recession (just ask Nancy Pelosi). It’s hard to believe they’re serious about solving the nation’s problems when they can’t even admit that the issues exist.
For over a year now, Biden has been in denial about inflation. First, it wasn’t happening, then it was just transitory, then it was a “good thing,” and then he just started blaming everyone else for it, be it Trump, Big Oil, or Vladimir Putin. Heck, even earlier this month, Biden downplayed inflation by calling the latest numbers “unacceptably high” but also dismissing the data as “out-of-date.”
So what exactly does this Inflation Reduction Act do, besides making it look like Biden is finally being proactive about inflation? According to researchers at the University of Pennsylvania’s Wharton Budget Model, the bill isn’t going to impact inflation long term. According to the model, the Inflation Reduction Act “would very slightly increase inflation until 2024 and decrease inflation thereafter”; however, “these point estimates are statistically indistinguishable from zero, thereby indicating low confidence that the legislation will have any impact on inflation.”
Thanks a lot, Joe Manchin. You know, we thought you were on our side.
So, what’s the point of the bill, really? According to David Harsanyi, writing at our sister site Townhall, the bill pumps “$369 billion into green boondoggles, which also acts as a slush fund for Democrats.” So the bill may not do anything about inflation, but it will inflate the campaign coffers of Democrats through their green energy allies. Isn’t that nice?
Strangely, this seems to help most Democrats besides Joe Manchin, who represents West Virginia, a coal-mining state. But hey, if this is how he wants to play it, I suppose he will have to live with the consequences.