So-Called Inflation Reduction Act Would Make Stagflation Worse
28th July 2022
In general, the name of a Congressional act is the opposite of what will actually happen.
Inflation happens when too much money is chasing too few goods and services. The government’s policies over the last two years have been a perfect recipe for the highest inflation in four decades: trillions of dollars in government spending financed by the Federal Reserve’s printing presses coupled with lockdowns, new regulations, a war on energy, and anti-work programs that drove down supply.
Biden’s $1.9 trillion American Rescue Plan Act, a stimulus spending bill in March 2021, proved to be the match that lit the inflationary fire.
Biden and his big-spending allies in Congress are now back for more.