Pirate's Cove

I’m sure there’s something about reducing inflation, right?

Inflation Reduction Act: 4 ways it will kick in right away

The signing Tuesday of the Inflation Reduction Act is set to kick off a parade of action from the Biden administration and other Democrats to sell the bill to the public. While some analysis shows it won’t meaningfully reduce inflation, the so-called IRA will devote hundreds of billions of dollars toward fighting climate change, reducing prescription drug costs, and cutting the deficit.

President Joe Biden and others will fan out around the U.S. in the coming weeks to discuss the bill, according to the White House — with Cabinet members traveling to 23 states just this month.

The coming Democratic message will likely focus on the aspects of the bill that could improve Americans’ lives immediately — including tax credits for electric vehicles and energy-efficient home improvements and key health care provisions.

Strange, they won’t be discussing how it can reduce inflation that is harming the working and middle classes? About how it will bring down food prices?

Here are the ways that the bill could be felt by November’s midterm elections — and what will take years.

• Tax credits for energy related home improvements (if you can afford it, what with prices going up on all that stuff, and whether you actually need it. It will probably increase inflation as market forces cause prices to go up)
• Expanded EV tax credits (great for the upper middle class and up. The majority of EV buyers make at least $150k-$200K a year. It won’t reduce inflation)
• Health care changes (while it’s great to cap Insulin to $35 a month, that’s only for Medicare. And more government money for Obamacare, while the rest of us have to pay full boat. It won’t help inflation)
• Oil drilling provisions (Who’s actually expecting Biden and the bureaucrats to allow this to actually happen? This is the one thing that could decrease inflation, but, it wouldn’t be soon, and, it won’t be allowed to happen)

So, really, nothing that helps the middle and working classes

In total, the bill is not expected to have a sizable impact on inflation. The Penn Wharton Budget Model recently predicted that the effort would slightly increase inflation until 2024 and then decrease it afterwards. Other studies have found modest deflation as a result of the bill.

It’s not clear whether the IRA will help Democrats during the midterm elections in November, though the president is projecting optimism. Biden recently said he expected it to help Democrats’ political fortunes because even the parts that are “not going to kick in for a little bit” will still be “really game-changing for ordinary folks.”

Is game changing now meant to denote “raise your cost of living and force you to purchase things you don’t want and can’t really afford”?