Report Debunks Manchin's Inflation Argument Against Build Back Better

[AZProgressive]

To justify obstructing one of his party's top legislative priorities, Democratic Sen. Joe Manchin of West Virginia has repeatedly claimed that the Build Back Better Act would exacerbate rising inflation.

(Snip)

But a new report published Wednesday by the congressional Joint Economic Committee (JEC) argues that Democrats' 10-year, $1.75 trillion reconciliation package would actually relieve inflationary pressures on the economy by slashing the sky-high costs of child care, prescription drugs, housing, and other basic necessities.

"By addressing the threat of climate change," the report adds, "the bill would reduce the role of fossil fuel price spikes and extreme weather in driving future inflation, insulating the economy from key sources of price spikes that can lead to inflation—just as occurred in 2021."

The report goes on to argue that because its costs would be funded by tax hikes on rich individuals and large businesses, the Build Back Better Act "does not present the risk of economic overheating—a concern that was waved aside as previous administrations passed trillions of dollars in tax cuts that were never paid for."

https://www.commondreams.org/news/2022/01/12/report-debunks-manchins-inflation-argument-against-build-back-better?utm_term=Autofeed&utm_campaign=echobox&utm_medium=Social&utm_source=Twitter#Echobox=1642052210

[Emile]

1. Blaming global inflation caused by Predatory Capitalism on Joe Biden

What a piece of shit!

[Wounded Bear]

2. K & R...nt

[appalachiablue]

3. Bogus, desperate attempt. K/R

[Ford_Prefect]

4. Don't rattle the conservatives with facts like that. They have a difficult time with the big words.

It's not fair to them when you point out their arguments are as false as a 3 dollar bill.

[Deminpenn]

5. Sen Warren was on one of the MSNBC shows

last night. She said the businesses are making record profits, something I'd not heard, and they are contributing to inflation by raising prices "because they can", implying at least some prices aren't rising because demand is currently outpacing supply.

Obviously, wages have gone up in the last year raising business labor costs. That's normal and expected to be reflected in prices of goods and services.

Then there are prices that are rising because "too many dollars are chasing too few goods", classic supply and demand economics. Businesses eventually will increase production to meet demand because production planning and forecasting is based on past data.

If Manchin is worried about inflation, it's the bi-partisan infrastructure bill that would contribute to inflation as big construction projects start competing with everything else for building materials, labor and production capacity (capital).

Build Back Better merely helps Americans cope with the current inflation by enabling them to pay for goods and services they are already using.