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Read Now: Over 230 Economists Give Dire Warning About ‘Inflation Reduction Act,’ Say It Will Make Inflation Worse – 101 Latest News

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Over 230 Economists Give Dire Warning About ‘Inflation Reduction Act,’ Say It Will Make Inflation Worse

#Economists #Give #Dire #Warning #Inflation #Reduction #Act #Inflation #Worse

As Democrats prepare to double down on the reckless economic policies of the Biden administration, a letter signed by over 230 economists was sent to both the House and Senate, warning that the impending Inflation Reduction Act does nothing of the sort.

That in fact, passage of the bill will only add fuel to the fire making already 40-year high inflation even worse, contradicting assertions made by President Joe Biden and Democrats about the bill.

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

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Will Make The Economy Worse

The economists stated that the economy is at a “dangerous crossroads” and the “inaptly named ‘Inflation Reduction Act of 2022’ would do nothing of the sort and instead would perpetuate the same fiscal policy errors that have 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 boosting demand, while the supply-side tax hikes would constrain supply by discouraging investment and draining the private sector of much-needed resources.”

The economists also point out that the corporate minimum tax hike will further damage supply chain issues.

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No Economic Slouches

The signers of the letter sent to Congress are not economic novices. They include Nobel laureate Vernon Smith, former Chair of the Council of Economic Advisers Kevin Hassett, former director of the Office of Management and Budget Jim Miller, and former president of the Federal Reserve Board Robert Heller.

In addition, professors from the University of Chicago, Princeton University, Duke University, University of Virginia, Columbia, and the University of Notre Dame signed on to the letter.

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

But even as experts try to warn of the impending economic disaster the bill could create, Democrats are not deterred. From the Senate floor on Thursday, Schumer stated, “The Inflation Reduction Act will lower inflation, lower the costs of prescription drugs, close loopholes long exploited by big business who pay no or little taxes.”

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

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

RELATED: Monkeypox Declared ‘National Health Emergency’

Party-Line Bill

Republicans were hoping that Joe Manchin would again be the lone voice of reason in his party and not support the Inflation Reduction Act. Instead, weeks of negotiation paid off for Chuck Schumer, but not for the people of West Virginia.

Ultimately, Schumer and Manchin agreed to a deal that Manchin could support and he promptly caved. The same Senator who once said, “If I can’t go home and explain it I can’t vote for it,” will now have to go home to a state that is the second largest coal producer in the nation, and explain why he backs a bill that would slap a 7.2% tax on the coal industry.

Sen. Kyrsten Sinema (D-AZ) was the last hope for scuttling the bill. On Friday, Sinema stated that, after making some changes in the tax provision portion of the bill, she was prepared to support the bill.

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

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

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Read Now: Jeffries Hasn’t Spoken to McCarthy Since Agreement – 101 Latest News

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Quote of the Day

#Jeffries #Hasnt #Spoken #McCarthy #Agreement

Speaker Kevin McCarthy (R-CA) told Fox News the debt ceiling deal contained no wins for Democrats, claiming that Minority Leader Hakeem Jeffries (D-NY) told him that himself.

Said McCarthy: “One thing Hakeem told me: there’s nothing in the bill for them. There’s not one thing in the bill for Democrats.”

But Jeffries told CBS News it’s not true: “I have no idea what he’s talking about, particularly because I have not been able to review the actual legislative text. I talked to him yesterday afternoon… I haven’t spoken to him since that point and time.”

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Read Now: Conservatives continue to rage against debt limit deal, while eyes turn to Progressive Caucus – 101 Latest News

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WASHINGTON, DC - NOVEMBER 18: Chair of the Congressional Progressive Caucus Rep. Pramila Jayapal (D-WA) speaks with reporters outside the U.S. Capitol Building on November 18, 2021 in Washington, DC. DC. Democratic leaders in the House are waiting on the final Congressional Budget Office cost estimate for President Joe Biden's Build Back Better before scheduling a vote on the $1.75 trillion social benefits and climate legislation. (Photo by Anna Moneymaker/Getty Images)

#Conservatives #continue #rage #debt #limit #deal #eyes #turn #Progressive #Caucus

Let’s start with the Democrats, who had been pretty quiet as the early details leaked. The Progressive Caucus chair Rep. Pramila Jayapal told CNN earlier today that she was waiting on the legislative text to make a final voting decision, “That’s always, you know, a problem, if you can’t see the exact legislative text. And we’re all trying to wade through spin right now.” That said, she mocked Republicans for not getting what they claimed to want—a reduction in the deficit. Hard to do that when they increased Pentagon spending and removed IRS funding designed to collect unpaid tax revenues.

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With the legislative text out, House Democratic leaders sounded optimistic late in the day about Progressive caucus support. 

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That is the standard reaction after expecting the worst—relief, mixed with surprise, like new food-stamp access for the homeless and veterans—a huge progressive win. (I can’t believe that wasn’t already a thing.)

Aside from question marks about the Progressive Caucus membership, the bulk of the party remained supportive. Insofar as I’m seeing any reaction, it’s simply parroting the White House’s talking points. If anything, any celebrations are muted, lest they add fuel to conservative efforts to scuttle the deal.

But as the Semafor headline noted, “The Democrats (mostly) won the debt ceiling fight.” Or as progressive journalist Josh Marshall put it, Republicans walked into a Deny’s at gunpoint, demanded money, and walked out with nothing more than breakfast. It’s okay to both be disappointed at some of the concessions, while also celebrate Biden’s major negotiating victory in a government in which Republicans, with the House, unfortunately do have a say

Many conservatives remain furious.

Rep. Chip Roy continues his tirade against the deal, tweeting at one point that “it’s worse than I thought every minute that goes by.” 

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And Roy understands the leverage Republicans are losing in the regular budget appropriations process, tweeting that “If you want the border to be secure – no member of the @HouseGOP can vote for this #debtceiling ‘deal’ because it will remove all leverage we have to force action on the border.” 

Of further conservative ire, Roy tweeted that the deal threw out the $131 billion House Republicans cut in their debt limit show bill, designed to get spending back to pre-COVID levels, and replaced them with “what appears to be effectively flat spending […] at the bloated 2023 Omnibus spending level, jammed through in a rush in December…”

In response, Utah Republican Sen. Mike Lee tweeted, “With Republicans like these, who needs Democrats?

Of particular interest is former Trump budget director Russ Vought, who is currently rallying opposition to the deal:

While we wait on text, let’s take the numbers as the GOP is claiming w/o knowing the gimmicks (Dems are claiming higher spending). Deal provides $1.59 trillion in FY24 v. $1.602 in FY23. You gave Biden $4 trillion for $12 billion in cuts largely coming from unspent COVID$?

Or take “It cuts nondefense spending to 2022!” No it doesn’t. FY22 nondefense spending was $689 billion. GOP numbers claim FY24 will be $704 billion. You don’t get a dog biscuit for that.  

Reviewing the text now. Confirms that there only 2 years of actual caps and then 4 years of meaningless language that binds only Congress & easily waived.

 The “administrative PAYGO” is totally worthless. It’s not just that it can be gamed with plans for fake offsets in exchange for real spending. Its that the OMB Director has complete waiver authority in Section 265 if “necessary for program delivery”

So I’m not a budget expert, but what that tells me is that whatever budgetary restrictions exist in the deal, they can easily be waived. 

Furthermore, responding to a seemingly sensible conservative noting that McCarthy’s leverage was limited given that Democrats control the White House and the Senate, Vought furiously responded, “What exactly did [McCarthy] deliver on? You can’t build on it because he gave every leverage point away for the remainder of Biden’s tenure. The bill is worse than a clean debt limit.”

Savor that.

The bill is worse than a clean debt limit.

I actually don’t know if that’s true, to be sure. But I desperately hope it is. 


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Read Now: Biden CBP Denies Government is Providing Financial Support to Illegal Immigrants, Gets Immediately Slapped With Fact Checks – 101 Latest News

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Biden CBP Denies Government is Providing Financial Support to Illegal Immigrants, Gets Immediately Slapped With Fact Checks

#Biden #CBP #Denies #Government #Providing #Financial #Support #Illegal #Immigrants #Immediately #Slapped #Fact #Checks

The U.S. Customs and Border Protection (CBP) denied that the federal government provides help or financial assistance to illegal immigrants, prompting a torrent of fact-checkers to come along and state that they are lying.

“NOTICE: Claims that migrants will be provided free travel and transportation to their destination are false,” the CBP’s official Twitter feed posted Thursday. “The U.S. government does not provide help or financial support for noncitizens.”

It is the second time they have made such a claim, posting a duplicate tweet roughly one month ago.

It is unclear what “claims” they are referencing or if the group was simply trying to get out in front of a situation in which illegal aliens coming in are expecting travel and transportation to new locations to be provided.

Regardless, several sources were quick to jump all over the CBP’s claims calling them alternately misleading, false, or a flat-out lie.

RELATED: Invasion Begins: Video Purportedly Shows Illegal Aliens Opening DHS Packets With Smartphones, Some Court Dates Not Until 2035

CBP Gets a Brutal Fact Check or Two

The Heritage Foundation think tank came along and, not pleased with the length of time Twitter’s Community Notes was taking to correct the CBP statement, provided their own fact check.

“Since @CommunityNotes hasn’t shown up yet, we’ll say it. This is a lie,” they wrote. “The U.S. Government pays NGO’s to do the work for them.”

The Heritage Foundation provided a link to their research showing the federal government uses charities “to hide the true cost of the border crisis.”

The report calls the funding of NGO’s through taxpayer funds Biden’s “dirty little secret” and describes them as “charities or religiously affiliated nonprofits but who spend most of their money and time helping illegal immigrants settle in the United States.”

That’s right. Your money helping to resettle illegal aliens into America so they can take even more of your money through social services or by taking jobs from Americans or legal immigrants.

RELATED: Texas Blocks Border Crossing Where Soldier Was Seen Opening Gate for Illegal Immigrants

More Call Out CBP’s Lies

Twitter’s Community Notes did catch up to the situation and slapped the CBP’s tweet with a little fact-check of their own.

“This statement by CBP is misleading as the federal government funds non-government organizations such as Catholic charities to assist in the travel, food, and shelter for illegal aliens and is coordinated by FEMA,” the label reads.

They provide a link to FEMA’s website promoting over $332 million in grants to provide “food, shelter, and services to individuals and families … who entered through the Southwestern Border and who are now awaiting their immigration court proceedings.”

Oh, good. So they’re only providing help and financial assistance until their court dates. Well, at least that shouldn’t take long, right?

Except, as The Political Insider reported earlier this month, documentation provided to illegal immigrants at the border had some being provided with court dates set as late as 2032 and 2035 in Chicago and Florida.

Potentially twelve years of financial assistance and the CBP wants you to believe that nah, we don’t provide financial support for illegal immigrants.

Fox News national correspondent Bill Melugin also called the CBP out over their statement.

“This is blatantly false,” he tweeted.

“The U.S. government indirectly provides financial support for migrants by giving hundreds of millions of taxpayer dollars to NGOs via FEMA’s Emergency Food & Shelter Program,” Melugin continued. “The NGOs then assist migrants w/ transportation around U.S & other services.”

Melugin just weeks ago posted a video showing a female National Guard soldier opening a gate and allowing a large crowd of illegal immigrants across the border onto private property in Texas.

The soldier did so, Melugin reported, because she “was following CBP directives to open the gate because the migrants had already crossed onto US soil and needed to be processed.”

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