Here's Why All The Inflation Fearmongering Over The Reconciliation Bill Is Nonsense
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While there are multiple valid theories about why this current inflation spike is surprisingly high and when it will subside, economists told TPM that there is overwhelming consensus that the reconciliation package will not cause inflation.
A Slow Injection
“That claim has zero merit,” Josh Bivens, research director at the left-leaning Economic Policy Institute, told TPM. “Whether or not BBB passes will not move the inflation rate up or down over the next year.”
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Bivens pointed to the fact that the package is not deficit spending, but entirely or almost entirely financed by taxes. It’s also, simply, not a stimulus package meant to inject a ton of money into the economy all at once.
“BBB is about public investment and safety net stitching,” he said. “It’s gonna come online at a much slower rate.”
https://talkingpointsmemo.com/news/inflation-manchin-reconciliation-economy
