“Statistically Indistinguishable from Zero”: Wharton Study Finds the Inflation Reduction Act Agreed Upon by Schumer and Manchin Has No Impact on Inflation

Jonathan Turley: CONSTITUTIONAL LAW, FREE SPEECH, POLITICS ^ | 07/31/2022

[SeekAndFind]

The Hill was thrown into near chaos this week when Senate Majority Leader Chuck Schumer (D-NY) and Sen. Joe Manchin (D-WV) unveiled the Inflation Reduction Act. Republicans charged that Manchin misled them into supporting a $280 billion chips and science bill — a bill they would have otherwise opposed. Others criticized the name of the bill, which contains a significant number of climate change items long sought by the Democrats. Now, the respected Wharton School at the University of Pennsylvania has found that the Inflation Reduction Act would actually have no impact on inflation.

Manchin premised his change on the fact that the bill would reduce inflation despite raising taxes and expenditures. The Act would combat climate change, extend enhanced Obamacare subsidies, and reduce the budget deficit by roughly $300 billion. Figures like Rep. Pramila Jayapal (D-WA) admitted that much of the Build Back Better bill is now in the Act.

Jon Huntley and John Ricco found that the bill “would reduce non-interest cumulative deficits by $248 billion over the budget window with no impact on GDP in 2031. The impact on inflation is statistically indistinguishable from zero.”

That is $52 billion less in deficit reduction than claimed by the Democrats and the review found the bill would actually “very slightly increase inflation until 2024 and decrease inflation thereafter.”

Wharton’s budget unit functions like an academic Congressional Budget Office in offering non-partisan budget analysis. At a time of growing orthodoxy and viewpoint intolerance, it remains an independent voice on budgetary issues.

For many, the Congress has become more bold in mislabeling legislation like an infrastructure bill that contained mainly non-infrastructure or “human infrastructure” provisions. Later a stripped down infrastructure bill was passed that was confined to actual infrastructure.

[Spok]

Printing more money will make inflation worse. Period.

[BookmanTheJanitor]

…which means it will make inflation much worse.

[stars & stripes forever]

Get rid of these ‘get along legislators who don’t stand for anything.

[Leaning Right]

> the respected Wharton School at the University of Pennsylvania has found that the Inflation Reduction Act would actually have no impact on inflation <

Wait until the major news outlets get wind of this story! It will be a great slap-down for Biden, Schumer, and Manchin.

I kid, of course. The major news outlets won’t mention this story at all. Instead they’ll be reporting that some guy told some other guy that Trump punched a Secret Service agent on January 6th.

[allendale]

The point of this Democratic bill is to cause more inflation, further debilitate the American nation and to advance their globalist /socialist dreams. Biden, Schumer, Pelosi and Fauci are killing America.

[PeterPrinciple]

Republicans charged that Manchin misled them into supporting a $280 billion chips and science bill — a bill they would have otherwise opposed.

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a bill they didn’t read or think about..................

[Aria]

Whatever these bastards name the bill is usually the opposite of what actually happens. What a crock. Most of them don’t deserve ANY power over OUR money.

[PeterPrinciple]

For many, the Congress has become more bold in mislabeling legislation

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Revenue enhancement Bill

Paperwork reduction bill.

Those were rather creative......................

[PeterPrinciple]

It’s easy to get people to vote for you when you promise to solve all their problems without hardship, and keep spending money. Here’s a check that will buy you one month of gas to make up for the years of unaffordable gas prices which in turn make all goods and services unaffordable. Here’s a check for help with Covid, even though your business was wiped out because it wasn’t big enough to lobby. Here’s $4,000 to help you buy a $66,000 electric vehicle, which the energy grid cannot sustain and which will be unaffordable to charge. Oh, and if you drive all day for your blue collar job, you’ll have to stop every couple of hours and charge for 45 minutes.

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from the article

[Starboard]

Republicans duped again.

The Dems run circles around them.

The Stupid and Duped party.

[HighSierra5]

Totally.

[TexasFreeper2009]

duh, of course it doesn’t

liberal are incapable of fixing inflation, and they always have been.

Liberals only have ONE answer to nearly any problem, throw money at it. But with inflation, that’s the ONE thing you can’t do, because it will only make it worse.

The fed raising interest rates will eventually fix the issue IF they raise them high enough for people to take money out of the market or other investments and lock up that money in high interest CD’s

[punknpuss]

a bill they didn’t read or think about..................

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They must still believe they have to pass the bill before they can know what’s in it. These people are traitors.

[tennmountainman]

McConnell got played again.
Maybe that was his intent.

[dfwgator]

McConnell didn’t get played. He wants it as much as Schumer does.

[Empire_of_Liberty]

The Republicans would rather be the duped opposition, than out looking for work.

[Jim W N]

If this ill-named and ill-conceived bill contains more government spending, then Wharton is way off the track (probably do not teach Free Market Economics (few do) but probably Keynesian economics).

More government spending INCREASES the money supply thus diluting the value of the dollar thus increasing inflation.

The answer to inflation: STOP AND REVERSE GOVERNMENT GROWTH AND SPENDING!!!

Their cure is worse than the ailment - as always.

[Reily]

I think it was the late P.J. O’Rourke who said something like “Democrats run for office as Santa Claus ready to handout whiskey with the car keys, Republicans run for office as your Dad telling you to do your homework, chores and no you can’t have the car!”.

[SpaceBar]

It’s hard to perform a statistical analysis on something that hasn’t happened yet, but I predict it will be disastrous.