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The Democrats’ marquee bill to reduce inflation would likely have zero impact on inflation, according to a study by the influential Penn Wharton Budget Model.
Senate Majority Leader Chuck Schumer (D-NY) and Sen. Joe Manchin (D-WV) unveiled the Inflation Reduction Act this week which they claim would combat climate change, extend enhanced Obamacare subsidies, and reduce the budget deficit by roughly $300 billion.
Manchin has harped on the need to curb inflation since he blocked the multi-trillion-dollar Build Back Better Act. Now, with the country in recession and Americans continuing to reel from inflation, Manchin hopes that the legislation could curb inflation and bring the country’s fiscal house back to order.
But the Penn Wharton Budget Model has poured cold water on the alleged disinflationary effects of the Democrats’ reconciliation bill.
