Democrat ‘Inflation Reduction Act’ Could Slightly Increase Inflation Over Next Two Years, Study Finds – By Zach Jewell (Daily Wire) / July 29, 2022
The Democrat-supported “Inflation Reduction Act of 2022” could lead to a slight increase in inflation over the next two years if it’s passed and signed into law, according to a Penn Wharton study released Friday.
Penn Wharton analyzed the massive spending package that reached a shocking agreement between Sen. Joe Manchin (D-WV) and Senate Majority Leader Chuck Schumer (D-NY) on Wednesday. The study came to a dismal conclusion for Democrats, and even found that the bill could do the exact opposite of what its name suggests through 2024.
“The Act would very slightly increase inflation until 2024 and decrease inflation thereafter. These point estimates are statistically indistinguishable from zero, thereby indicating low confidence that the legislation will have any impact on inflation,” the Penn Wharton Budget Model found.
According to the study, inflation could rise by 0.05% over the next two years before a marginal drop of 0.25% “by the late 2020s,” rendering the spending package basically ineffective at accomplishing its purpose.
