HOW CONGRESS PLANS TO REDUCE INFLATION WITH THE INFLATION REDUCTION ACT
The US government wants to reduce inflation. They have a plan to do so, but first, they must address the budget deficit. So what exactly is their goal?
The plan includes decreasing climate change, making healthcare more affordable, decreasing energy bills, and creating more jobs while making the deficit go down. The plan will be paid for by wealthy individuals getting a small tax increase. These five significant items will significantly reduce inflation.
THE DEFINITION OF INFLATION ECONOMICS
Definition of inflation economics: Generally, the rate of increase of prices over a given time due to many different factors. One factor is supply and demand. With more demand and less supply, prices will go up.
The definition of inflation economics is closely tied to the increase in prices of the current and future economy.
MAJOR PROBLEMS CAUSED BY CLIMATE CHANGE
The primary cause of climate change is pollution. As climate change is controlled, pollution will be decreased. What are the major causes of pollution? Greenhouse gases from car and manufacturing emissions. Once these are under control, pollution can be reduced.
Climate change causes constant floods in some states and fires in others. The overall heat index is soaring. This is causing the rivers to dry and water to become scarce. Budgets are getting hit hard due to an increase in water costs and, in some cases, no water at all.
Inflation Economics is Tied to Supply and Demand
CLIMATE CHANGE DESTRUCTION IS THE MOST EXPENSIVE
Floods cause the destruction of homes and other structures. The increase in costs comes from the replacement of those structures. Even if you have insurance, deductibles must be paid.
Usually, with the overuse of insurance, premiums will increase – this is also a budget buster. Some homes and business structures will be lost permanently due to a lack of finances or insurance.
The definition of inflation economics is closely tied to climate change since the destruction it causes also increases the cost of goods and services.
REDUCE INFLATION TO SAVE MONEY FOR CONSUMERS LONG TERM
These are just a few of the reasons climate change legislation is necessary. The problems due to climate change in the United States and other countries are getting apocalyptic. If you watch any local or national news, you will see the worsening floods and fires in many states.
The high temperatures are out of control. Addressing climate change will reduce inflation due to the reduced cost of replacement from the destruction.
How will the congressional Inflation Reduction Act reduce inflation? In summary, the inflation reduction act will reduce inflation and lower costs on various items for all Americans.
It will save money for consumers in numerous many ways.
INCREASED MEDICARE BENEFITS FOR SENIORS
The inflation reduction act includes expanding affordable health care benefits. It will expand Medicare benefits by giving free vaccines in 2023 and stops insulin payments at $35 per month for seniors.
This payment decrease is massive since insulin is used daily by people with diabetes. Out-of-pocket drug costs will be capped near $4000 or less and decreased to $2000 in 2025 for Medicare.
INCREASED AFFORDABLE HEALTH CARE BENEFITS
For consumers in general, healthcare will be lowered through the Affordable Care Act. The average person in the ACA marketplace will save $800 a year. Medicare will also be able to negotiate prices on over 100 drugs in the next decade.
If the price of a drug is higher than inflation, Medicare can rebate back the price increase to the senior citizen. Affordable health care benefits are a game changer.
Many Americans incur high health care costs because they wait until the disease is advanced and therefore costly to treat because they have no affordable health care benefits. This will change now.
Climate Change and Pollution are Closely Aligned
DIRECTLY IMPACTING CLIMATE CHANGE AND LOWERING COSTS OF INFLATION ECONOMICS
A climate investment like no other before will reduce carbon emissions. Carbon emissions are one of the largest contributors to negative climate change. Emissions will be decreased by approximately 40% by 2030.
Energy bills will be cut by the legislation also, cutting bills by $500 to $1,000 per year.
AN INVESTMENT IN DISADVANTAGED COMMUNITIES
Poor or disadvantaged communities have often complained of toxic dumping in their neighborhoods. Because they don’t have the money or resources to remove the toxic material, their complaints fall on deaf ears.
Children in these communities suffer from a disproportionate amount of asthma and other diseases due to toxins and pollution.
There will be a $60 billion environmental justice fund to clear this up. For the first time, they will take measured steps to clean up pollution and reduce environmental injustice in poor communities in the United States.
CLEAN MANUFACTURING JOBS WILL BE CREATED
The inflation reduction act will reduce inflation with the creation of more than $60 billion in new domestic clean manufacturing jobs. This should also bring some overseas manufacturing back to the United States.
HOW WILL THE INFLATION REDUCTION ACT BE PAID FOR?
There are not enough IRS agents to audit cheaters on taxes in the United States. Therefore, many people get away without paying their fair share of taxes, especially the rich.
Many tax loopholes will be closed that are used by the rich. There will be a 15% minimum tax and a 1% fee on stock buybacks. New IRS agents will be hired to enforce tax laws.
Families and small businesses who make under $400,000 will not see any tax increases.
ESTIMATES FOR HOW THE GOVERNMENT WILL RAISE THE MONEY TO REDUCE INFLATION
|Revenue and Investments||Money Raised and Invested|
|TOTAL REVENUE RAISED||$737 billion|
|15% Corporate Minimum Tax||222 billion*|
|Prescription Drug Pricing Reform||265 billion***|
|IRS Tax Enforcement||124 billion**|
|1% Stock Buybacks Fee||74 billion*|
|Loss Limitation extension||52 billion*|
|TOTAL INVESTMENTS||$437 billion|
|Energy Security and Climate Change||369 billion*|
|Affordable Care Act Extension||64 billion**|
|Western Drought Resiliency||4 billion***|
|TOTAL DEFICIT REDUCTION||$300+ billion|
The Inflation Reduction Act will reduce inflation in many ways. The major way it will reduce inflation is by using the definitions of inflation economics. In this case, it is pulling out some of the most effective and important ways to help Americans. Affordable health care benefits will increase, and medicare costs will go down.
The funding of clean manufacturing plants will add jobs. Consumers will see lower energy bills, and there will be an investment in poor communities affected by toxic waste dumping. The bill will save Americans $300 million dollars from the deficit. It will be paid for by a small tax on wealthy Americans and companies.