Sen. Manchin’s Favorite Budget Model: “Inflation Reduction Act” Will Increase Inflation
On Friday, researchers with the Penn Wharton Budget Model – a favorite of Senator Joe Manchin (D-WV) – reported that the newly revived Build Back Broke bill will do little to nothing to tamp down the inflation crisis that is robbing the paychecks of hardworking Americans and would actually increase inflation in the near term.
If only naming the bill something made it so. Like how the “Affordable Care Act” lowered healthcare premiums: Hardworking American families are already facing the worst inflation crisis in 40 years, a 5.1 percent decline in their real wages, and a recession after two straight quarters of negative economic growth. Washington Democrats are just offering more of the same. Key Background
- JCT Confirms: 50% of Democrats’ Book Minimum Tax Would Hit U.S. Manufacturers
- Democrats in Their Own Words: Don’t Raise Taxes During a Recession
- Flashback November 2021: Penn Wharton Confirms Build Back Better Spends $4.26 Trillion
The American Economy is in Recession under Joe Biden
- When Biden took office, CBO projected real GDP would grow 2.9 percent in the first quarter of this year. Real GDP fell by 1.6 percent.
- When Biden took office, CBO projected real GDP would grow 2.2 percent in the second quarter of this year. Real GDP fell by 0.9 percent.
- Over the last 75 years, every single time the economy has experienced consecutive quarters of negative growth, America has been in a recession.
- During the 2007-2009 recession, 9 million Americans lost their jobs and 10 million people fell into poverty, including 3 million children.
- This week, the Federal Reserve raised interest rates by 75 basis points – the fourth such rate increase since March – to combat the President’s inflation crisis. In total, the federal funds rate has risen by 2.25 percent, the fastest cumulative rate hike in 40 years.
- The interest rate on a 30-year fixed mortgage has doubled since Biden took office.