That is what the model says. Reality?
Liberals will be liberals. Let me know when they vote NOT to senselessly spend money that they don’t have, and it will be news. Otherwise, they are just acting normally-which is to say, they are fucxting the taxpayers at every opportunity.
Money into pockets, out of thin air. Great gig, if you’re on the inside.
Liberal remedies consists of continue to do what didn’t work, only more of it.
Once again, another clusterbuck solution do they can all say that they addressed the problem, while kicking the can down the street.
It doesn’t do a d*** thing to reduce inflation. More spending does not do a thing to reduce inflation, especially when inflation is caused by shortages. Shortages caused by…. Gee, let me guess.
Why do supposed “conservative” commentators play their game? First by even using the propaganda nomenclature the dems put on the bill and second, by citing an economic model that is pure fiction.
Anyone anywhere knows that if you pump $400 billion more dollars into the economy, you’re going to make inflation worse. Still more, the government is going to take billions out of productive enterprises and redistribute it to green fairy dust projects. What could possibly go wrong?
Must be CRT math....
How f*ing stupid is this. It includes tax increases on the rich and businesses...the usual bogeyman for the Democrats. Ok, so if business taxes go up, they will try to pass that onto consumers. However, since price goes up, demand goes down and that’s supposed to lower prices? What it does is raises prices consumers face, resulting in less being bought, which also means less demand for labor and other inputs.
Increase taxes on the rich sounds so good, until you realize it is the rich who create new businesses and expand existing ones using their capital for real investment in plant and equipment. So, let’s kick them in the teeth because most people vilify the rich and love the poor. Never mind that they can’t create growing employment opportunities. Why do we glorify the poor? How many of you were hired by a poor person?
The Fed isn’t helping, either. The Equation of Exchange says MV = PQ, where M is the money supply, V is the velocity of money (i.e., the rate it turns over in the system—pretty much unchanged for decades), P is the price index, and Q is real output of goods and services. Because V is virtually constant and we want P to be constant (no inflation), if real output grows by X percent, then the money supply needs to increase by a similar percent. It takes a steady hand on M to keep things balanced. Now, go look at the data on M2 (the near-money measure of M) and you’ll see the Fed looks like it has palsy.
Finally, study a President who has no clue on any of this or, indeed, even where he is. All this bodes badly for the US.
It doesn’t even do that.
Seems about what I'd expect.
Deficit spending to reduce inflation?
Talk about bass ackward!
It’s a spending hike paid for by a tax increase on corporations and some imaginary savings from heathcare.
The bill will have zero effect on inflation. Inflation over the long term is a monetary phomenoa.
In the meantime...companies that would invest...or raise wages or benefits...will do less and the government will waste any gain...as usual...
Let me mull this over. This means the Dems lied to us. Never thought I’d see that day. /S
Where’s the “yeah, all right” girl GIF?
I assume this means $739 billion of new spending. If so, I don't think it will reduce inflation one iota, it will increase inflation.
It’s called the Inflation Reduction Act because they really wanted to implement Build Back Better, but couldn’t, so they didn’t. That saved us from a few trillion inflationary dollars, temporarily. We’re supposed to be grateful.