The Inflation Reduction Act

The Inflation Reduction Act

The budget modelers at Penn‐​Wharton estimate that the Senate bill would reduce the deficit by $86 billion in 2031, at most. That would be just 4 percent of the projected deficit that year and just 0.2 percent of U.S. GDP. So the bill’s impact on inflation through reducing deficits and demand would be close to zero.

Tax Foundation calculates that the Senate bill would reduce deficits by $178 billion over 10 years, which is just 1 percent of expected deficits over the period. Both Tax Foundation and Penn‐​Wharton find that the Senate bill would actually increase deficits the first few years, and thus have the opposite effect on inflation as the “reduction” promised by the bill’s title.--Edwards

A 15% business tax, doubling the size of the IRS, subsidies to EVs, cap on pharmacy prices--it looks like a primer for bad government policy. But you can be reassured. The Inflation Reduction Act sends $300,000 to Botswana for transgender education.

Is any culture rich enough to afford this kind of behavior?