As Democrats prepare to double down on the Biden administration’s reckless economic policies, a letter signed by more than 230 economists has been sent to the House and Senate warning that the next law on reducing inflation does no such thing.

That in fact, passage of the bill will only add fuel to the fire, further aggravating inflation already high for 40 years, contradicting claims by President Joe Biden and Democrats about the bill of law.

The bill, which now has all 50 Democrats on board, is expected to pass Saturday without a single Republican vote.

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Will make the economy worse

Economists said the economy is at a “dangerous crossroads” and “the misnamed ‘Inflation Curb Act of 2022’ would do no such thing and instead perpetuate the same mistakes in fiscal policy that helped precipitate the current troubling economic climate.”

The letter continued, addressing the $433 billion in new spending contained in the bill. Such an increase in government spending “would create immediate inflationary pressures by stimulating demand, while supply-side tax hikes would limit supply by discouraging investment and draining the private sector of much-needed resources.”

Economists also point out that raising the minimum corporate tax will further damage supply chain issues.

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No economic worries

The signatories of the letter sent to Congress are not novices in economics. They include Nobel Laureate Vernon Smith, former Chairman of the Council of Economic Advisers Kevin Hassett, former Director of the Office of Management and Budget Jim Miller and former Chairman of the Federal Reserve Board Robert Heller. .

Additionally, professors from the University of Chicago, Princeton University, Duke University, University of Virginia, Columbia, and the University of Notre Dame signed the letter.

The recipients of the letter were Senate Majority and Minority Leaders Sens. Chuck Schumer (D-NY) and Mitch McConnell (R-KY), Speaker House Rep. Nancy Pelosi (D-CA ) and House Minority Representative Kevin McCarthy (R-CA).

But even as experts try to warn of the impending economic disaster the bill could create, Democrats are undeterred. From the Senate floor on Thursday, Schumer said, “The Cut Inflation Act will cut inflation, cut prescription drug costs, close loopholes long exploited by big corporations that pay little or no taxes.”

Joe Biden also encouraged Congress to pass the bill, saying, “My message to Congress is this: Listen to the American people.” He added,

“This is the strongest bill you can pass to reduce inflation, continue to reduce the deficit, reduce health care costs, fight a climate crisis, and promote America’s energy security and reduce the burdens on working-class and middle-class families.”

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Party-Line Bill

Republicans hoped that Joe Manchin would once again be the only voice of reason in his party and would not support the Cut Inflation Act. Instead, weeks of bargaining paid off for Chuck Schumer, but not for the people of West Virginia.

In the end, Schumer and Manchin worked out a deal that Manchin could support and he quickly relented. The same senator who once said, “If I can’t go home and explain it, I can’t vote for him,” will now have to go home to a state that is the second-largest coal producer in the country, and explain why he supports a bill that would impose a 7.2% tax on the coal industry.

Senator Kyrsten Sinema (D-AZ) was the last hope to defeat the bill. On Friday, Sinema said that after making some changes to the tax provisions part of the bill, she was ready to support The law project.

She said, “We agreed to remove the deferred interest tax provision, protect advanced manufacturing and boost our clean energy economy in Senate budget reconciliation legislation.”

Sinema’s support all but guarantees passage of the bill in the Senate with the necessary 50 votes and will move to the House for final approval next week.

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