One thing the 'lower inflation act" might not do? lower inflation

[hislegacy]

One thing the Inflation Reduction Act may not do: Lower inflation

The Inflation Reduction Act is aimed at tackling a host of problems, from climate change to catching tax cheats, but there's one issue it may not solve: reducing inflation.

That's the conclusion of the Penn Wharton Budget Model, a group of economists and data scientists at University of Pennsylvania who analyze public policies to predict their economic and fiscal impacts. Its analysis, published Friday, comes as inflation remains near a 40-year high, crimping the budgets of consumers and businesses alike.
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Show of hands - who is surprised?

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[durangodawood]

One thing the Inflation Reduction Act may not do: Lower inflation

The Inflation Reduction Act is aimed at tackling a host of problems, from climate change to catching tax cheats, but there's one issue it may not solve: reducing inflation.

That's the conclusion of the Penn Wharton Budget Model, a group of economists and data scientists at University of Pennsylvania who analyze public policies to predict their economic and fiscal impacts. Its analysis, published Friday, comes as inflation remains near a 40-year high, crimping the budgets of consumers and businesses alike.
​

Show of hands - who is surprised?

​

I suspect this is right on.

Seems like inflation is mainly the result of forces larger than those congress (or the president) control. Thats why its a global phenomenon.

While I agree with many provisions of the act, its name is all about political value.

 

[Pavel Mosko]

I think there is a shot where it is going to look like it is working, where inflation goes down and even deflation begins to occur. This however is because we might actually have a depressions brewing amidst the obvious present stag inflation. One Economist Video blogger I was watching mentioned how various products tied to economic growth like copper, steel, and wood are going down in price and that is a bad sign because it means there is less demand and those items are used to produce many things from housing, furniture, electronics, vehicles etc. and if those go down that means people are buying less of those things and basically saving their money for a rainy day.