Member-only story
Did the Inflation Reduction Act Hurt Democrats in the Midterms?
It may have created unrealistic expectations about lowering inflation.
“Democrats Spent $2 Trillion to Save the Economy: They Don’t Want to Talk About It,” groused the New York Times on October 16.
Well, that’s probably because inflation has, very inconveniently, only increased since Democratic lawmakers passed the Inflation Reduction Act.
“When will the Inflation Reduction Act start reducing inflation?” is a question White House Spokesperson Karine Jean-Pierre is getting a lot these days, and not just from the right.
The answer is: Not until at least next year. And that’s if it works at all.
Not everyone was convinced it would work back in August; even fewer are as confident now.
“The U.S. economy is at a dangerous crossroads,” warned a group of concerned economists on August 3, 2022, in a letter sent to House and Senate leadership. “Forty-year high inflation is causing immense strain for households and small businesses, and it is prompting steep interest rate hikes that, while necessary to counter fiscal policy excesses, increase the chance of a deepening recession.”
“As such, taming inflation must be the top short-term economic policy to avoid further economic decline and hardship,”…