Today, a proposed bill which came about through an agreement reached by Democratic senators Joe Manchin and Chuck Schumer was passed by the Senate, a bill which is deceptively titled the “Inflation Reduction Act.” What it actually is is a $280 billion chips and science bill, which has a significant focus on climate change initiatives that the Democrats have been fighting for.
So what does that mean in regards to the effect this bill will actually have on inflation? An interesting study done by the Wharton School at the University of Pennsylvania answers this question.
Jonathan Turley writes: “ Jon Huntley and John Ricco found that the bill ‘would reduce non-interest cumulative deficits by $248 billion over the budget window with no impact on GDP in 2031. The impact on inflation is statistically indistinguishable from zero.’
That is $52 billion less in deficit reduction than claimed by the Democrats and the review found the bill would actually ‘very slightly increase inflation until 2024 and decrease inflation thereafter.’
Wharton’s budget unit functions like an academic Congressional Budget Office in offering non-partisan budget analysis. At a time of growing orthodoxy and viewpoint intolerance, it remains an independent voice on budgetary issues.”
So, this bill will not do a damn thing in regards to reducing inflation. Then what will it do?
Ron Paul writes: “… the bill authorizes spending hundreds of billions of dollars on energy and fighting climate change. Much of this is subsidies for renewable energy — in other words green corporate welfare. Government programs subsidizing certain industries take resources out of the hands of investors and entrepreneurs, who allocate resources in accordance with the wants and needs of consumers, and give the resources to the government, where resources are allocated according to the agendas of politicians and bureaucrats. When government takes resources out of the market, it also disrupts the price system through which entrepreneurs, investors, workers, and consumers discover the true value of goods and services. Thus, “green energy” programs will lead to increased cronyism and waste.
The bill also extends the ‘temporary’ increase in Obamacare subsidies passed as part of covid relief. This will further increase health care prices. Increasing prices is a strange way to eliminate price inflation. The only way to decrease health care costs without diminishing health care quality is by putting patients back in charge of the health care dollar.”
It is ironic that price increases will happen due to a bill that claims it will fight inflation. Perhaps DC is trying to change the definition of inflation too, but it really is not needed since they never truly acknowledge what inflation is anyways. While rising prices are a symptom of inflation, it is the expansion of the money supply which creates inflation. DC would never acknowledge this because inflation benefits them and their agenda since it is their unnatural elite class that are the ones who get to utilize the newly printed fiat money first. They do not feel the effects of it in the short run, and by the time they do they will have already accomplished their goals, which means they will not hurt much, if at all. It should also be noted that history shows that irrational people, who make up most of society, will call on the government to “save” them from rising prices. The government is always happy to do so because it gives them more control over the economy, which gives them more control over us, and it also gives them another excuse to print more money and keep the inflation going. This is all intentional, and the government aiding itself through its own spending, along with the increase in cronyism, all naturally comes along with it.
If you know how big government works then you know this is all to be expected from any bill put forth that has such a nice sounding title. The better it sounds, the more you are getting screwed. It gets even worse though. Dr. Paul also points out how the authors of the bill expect to reduce inflation by taxing the rich. While Dr. Paul goes on to explain how this is just as counterproductive as everything else the government does, the claim that this bill is targeting the rich is a flat out lie.
From the New York Post: “A key provision in the Inflation Reduction Act — which throws an extra $80 billion to the IRS to improve the agency’s collection of under-reported income — will end up targeting small business owners to pay for the legislation, according to nonpartisan watchdog the Joint Committee on Taxation.
The group estimates that between 78% and 90% of the estimated additional $200 billion the IRS will collect will come from small businesses making less than $200,000 annually.
Just 4% to 9% would come from businesses making north of $500,000 a year — meaning the legislation is in sharp contrast to President Biden’s longstanding claim that he wouldn’t raise taxes on anyone making less than $400,000.
‘The IRS will have to target small and medium businesses because they won’t fight back,’ Joe Hinchman, executive vice president at National Taxpayers Union Foundation, told The Post…
In fact, going after the lower and middle class can actually be more lucrative for IRS auditors than trying to get more money from the wealthy. ‘The rich have their lawyers and fight it — that’s why the poor are easier to go after,’ Hinchman adds.”
So this bill will increase resources for the IRS to further their ability to crush the middle class into the lower class. This allows the unnatural elite to expand their control and grow in power. This also means lower to middle class Americans will not have a chance to become prosperous through small and honest business ventures that they create. Rather, the American dreams of many will be crushed, and they will be forced to work in small roles for big business in order to serve corporatists and their agendas. But even working for those phony corporations may be a thing of the past as the future goes on, since the trend of automated robots taking the place of humans in the workplace keeps catching on. Headlines like “Deutsche Bank claims that it will use artificial intelligence and ‘robots’ to achieve its goal of terminating 18,000 employees.” or “White Castle to hire 100 robots to flip burgers.” are very telling in regards to the circumstances surrounding our future economic standings. And yet immigrants are still flooding into our country, why? Because it is just more cattle for the government to prod and produce from, and immigrants especially are an aid to their agenda. Just look at how they vote.
This is all being systematically done because the powers that be do not want us to be working for ourselves and thus put ourselves in better financial positions that allow us more power over our lives. Inflation always kills our finances, and this legislation will ensure that this will keep happening with much more control being implemented on us by way of the government expanding its own power. They want us to answer to them while creating a divide that keeps us separated as a people and thus easier to conquer. Calamity brought about by stealing from the poor to give to the powerful, giving our jobs to robots, and clashes of culture between immigrants and citizens will ensure that divide.
This bill being passed paints an even grimier future for America, as if the last 2 years have not been enough. Of course, it is not over till it is over, and we can still make efforts to secure our finances and work to take back our future. Let us hope these efforts will be taken on and will be fruitful. Let us hope this author’s forecasts for a future that floods our lives with more outside control over us along with the castration of our liberties is wrong.
This article was originally published at The Societal Scope.