Experts Warn Manchin’s Bill Will Hurt Economy
While Manchin has reached an agreement with his fellow democrats, hundreds of economists are wary of how his bill will affect the economy.
From Fox Business. A letter sent to House and Senate leadership from 230 economists argue that the Infrastructure Reduction Act is expected to contribute to skyrocketing inflation and will burden the U.S. economy, contrary to President Biden and Democrats’ claims.
The economists wrote in the letter first obtained by Fox News Digital that the U.S. economy is at a “dangerous crossroads” and the “inaptly named ‘Inflation Reduction Act of 2022’ would do nothing of the sort and instead would perpetuate the same fiscal policy errors that have helped precipitate the current troubling economic climate.”
Sen. Joe Manchin, D-W.Va., announced last week he reached an agreement with Senate Majority Leader Chuck Schumer, D-N.Y., on the $739 billion reconciliation package after more than a year of negotiations among Democrats.
The economic experts point out the $433 in proposed government spending, which the experts argue “would create immediate inflationary pressures by boosting demand, while the supply-side tax hikes would constrain supply by discouraging investment and draining the private sector of much-needed resources.”
They also write that of “particular concern” is the corporate minimum tax that they say will undercut efforts to restore functioning supply chains.
In addition, the bill’s prescription drug provisions “would impose price controls that threaten healthcare innovation, creating a human health toll that would add to the financial woes that Americans are already experiencing.”
A few of the notable signers include Nobel laureate Vernon Smith, former Chair of the Council of Economic Advisers Kevin Hassett, former Director of the Office of Management and Budget Jim Miller and Robert Heller, former president of the Federal Reserve Board 1986-1989.
In addition, professors from the University of Chicago, Princeton University, Duke University, University of Virginia, Columbia University and the University of Notre Dame, among others, were listed on the letter dated Aug. 3.
The experts conclude that although they agree with an “urgent” need to address inflation, Manchin’s bill is a “misleading label” applied to legislation that would achieve the “opposite effect….”
What do you think of the Infrastructure Reduction Act? Share your thoughts and prayers below.
(Excerpt from Fox Business. Photo Credit: Getty Images)
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