ICYMI: NYT: REPUBLICANS DENOUNCE INFLATION, BUT FEW ECONOMISTS EXPECT THEIR PLANS TO HELP
Even Conservative Economists Say It’s “Unlikely” Republican Plan Would Reduce Inflation
In Case You Missed It — The New York Times reported that although Republican lawmakers are expressing anger over inflation, economists believe their plans to fight it wouldn’t have any meaningful impact. Those plans include reducing government spending and making the 2017 tax cuts permanent. The tax cuts are set to expire in three years.
Even Michael R. Strain, an economist at the conservative American Enterprise Institute, said “It is unlikely that any of the policies proposed by Republicans would meaningfully reduce inflation in 2023.”
But while Republicans insist they will be better stewards of the economy, few economists on either end of the ideological spectrum expect the party’s proposals to meaningfully reduce inflation in the short term. Instead, many say some of what Republicans are proposing — including tax cuts for high earners and businesses — could actually make price pressures worse by pumping more money into the economy.
“It is unlikely that any of the policies proposed by Republicans would meaningfully reduce inflation in 2023, when rapidly rising prices will still be a major problem for the economy and for consumers,” said Michael R. Strain, an economist at the conservative American Enterprise Institute.
As they position themselves for the midterm elections, Republicans have also indicated that they might try to hold the nation’s borrowing limit hostage to achieve spending cuts. The debt ceiling, which caps how much the federal government can borrow, has increasingly become a fraught arena for political brinkmanship.
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Invest In America is a national rapid response operation advocating for robust public investment to rescue the economy from the COVID crisis and create prosperity for the future, and to fight back against fear-mongers who use deficit concerns as a scapegoat to starve American communities and businesses of resources.
The operation consists of two components: Invest in America, the charitable and public education arm, which is a fiscally sponsored project of Economic Security Project funded by the William and Flora Hewlett Foundation and Economic Security Project co-chair Chris Hughes; and Invest in America Action, the advocacy and social welfare arm, which is a fiscally sponsored project of Economic Security Project Action funded by Chris Hughes and the Omidyar Network.