Former Congressman Ron Paul is warning that the Inflation Reduction Act won’t help reduce inflation. He’s also warning that an economic collapse is coming. “The collapse will come… The debt has to be liquidated,” he said. “The preference I would have is [for the government] to quit spending. Balance the budget. Don’t accumulate any more debt. But politically, having spent a little bit of time in Washington, it’s not going to happen.”
Kitco News/Cornelius Christian
The Inflation Reduction Act will do nothing; The U.S. economy’s ‘inevitable collapse’ will come due to excessive debt – Ron Paul
Over the weekend, the Senate passed the Inflation Reduction Act, which aims to reduce inflation. The bill contains $430 billion in new spending, including $300 billion earmarked for climate change and clean energy.
The bill is now being sent to the House, where it is expected to pass, and on to President Biden’s desk for signing.
Despite being an ‘Inflation Reduction’ Act, the nonpartisan Congressional Budget Office (CBO) forecasts that the act’s measures will have a negligible impact on inflation. Democrats have argued that the bill will tackle rising prices, while Republicans argue that the new spending will aggravate inflation.
The bill also contains efforts to raise taxes, which the Congressional Budget Office predicts will end up lowering the deficit slightly.
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Wholesale inflation fell 0.5% in July, in another sign that price increases are slowing
Wholesale prices fell in July for the first time in two years as a plunge in energy prices slowed the pace of inflation, the Bureau of Labor Statistics reported Thursday.
The producer price index, which gauges the prices received for final demand products, fell 0.5% from June, the first month-over-month decrease since April 2020, the month after Covid-19 was declared a pandemic. Economists surveyed by Dow Jones had been expecting an increase of 0.2%.
On an annual basis, the index rose 9.8%, the lowest rate since October 2021. That compares with an 11.2% increase in June and the record 11.7% gain in March.
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Fox Business/Megan Henney
All of the hidden tax hikes included in the massive spending bill
The sweeping climate, health care and tax bill that Senate Democrats passed Sunday includes one of the biggest tax hikes in decades, including a new levy for corporations that repurchase their own stock.
The Inflation Reduction Act of 2022, which passed along party lines with Democrats employing the budget reconciliation process, would raise an estimated $739 billion over the next decade, with the revenues going toward initiatives designed to combat climate change and curb pharmaceutical prices, as well as efforts to reduce the nation’s $30 trillion debt.
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