The Inflation Reduction Act: Another Unfair and Unjustified State Intervention
Taking advantage of their current majorities in Congress, which might not last beyond the midterms, and after eighteen months of marathon negotiations, the Democrats finally passed yet another plan to artificially and unfairly dope the US economy. The $430 billion plan was signed into law by President Joe Biden soon after.
Indeed, after the midterm elections of November 8, 2022, few believe that the Democrats will keep their legislative majorities, given the so far disastrous presidential term of the Biden administration. Suffice it to recall that President Biden seems to be senile, that Washington is fomenting and financing major crises around the world that do not even benefit the American people, and that the Consumer Price Index in the USA (the CPI) has been rising sharply since 2021.
Indeed, after the astronomical sum of $6 trillion spent under the pretext of the covid-19 pandemic, this latest spending plan concerns the climate and health. Most of this spending, $370 billion, is related to the climate; the objective is to reduce greenhouse gas emissions by 40 percent by 2030, using a tax credit to encourage citizens to transition to electricity and solar, and to push companies toward energy transition as well.
The Inflation Reduction Act Won’t Reduce Inflation
Washington’s latest spending plan is a good opportunity to show why, as a libertarian, it is necessary to be completely opposed to it.
Such a bill is above all a classic political weapon, consisting in buying the electorate to try to reverse the catastrophic result expected at the midterms. As the New York Times, reported, the passage of this plan “launched a frantic 91-day sprint to sell the package by November—and win over an electorate that has become skeptical of the Democratic regime.”
This spending plan will be funded to some extent by the creation of a minimum tax of 15 percent for large corporations, but above all, it will be paid for—no surprise—by an increase in US debt, which is alre
Article from Mises Wire