Experts Agree: Republicans’ Plan Won’t Lower Costs
October 26, 2022
The New York Times released a report today highlighting the fact that, according to experts, Republicans’ economic agenda, which they have been touting for months, would not fight inflation or bring down costs for the American people.
Republicans’ plan could actually raise costs and make inflation worse.
New York Times: “[W]hile 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… 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.”
What’s more, Republicans have even said themselves that they’re willing to play games with the economy to ensure they can cut programs like Social Security and Medicare, even if it means jeopardizing the financial futures of millions of Americans.
New York Times: “Republicans have also indicated that they might try to hold the nation’s borrowing limit hostage to achieve spending cuts… That would effectively bar the federal government from issuing new bonds to finance its deficit spending, potentially jeopardizing on-time payments for military salaries and safety-net benefits, and roiling bond markets.”
Republicans are hellbent on undoing the work of the Biden-Harris administration to support working families and bolstering harmful Trump-era economic policies, which could increase the deficit, hurt economic growth, and raise costs.
New York Times: “[E]conomists estimate that two policies favored by Republicans — repealing a new minimum tax on large corporations included in the Inflation Reduction Act and extending some business tax cuts from Mr. Trump’s 2017 legislation — could collectively increase the federal budget deficit by about $90 billion next year.”
New York Times: “Such an increase could cause the Federal Reserve to raise rates even faster than it already is, further choking economic growth. Or, alternatively, it could add a small amount to the annual inflation rate — perhaps as much as 0.2 percentage points. Fully repealing the Inflation Reduction Act would also mean raising future costs for prescription drugs for seniors on Medicare, including for insulin, and potentially raising future electricity costs.”
It’s not hard to see: Republicans have no interest in fighting to keep costs down for the American people; they’d much rather push an extreme agenda that uses America’s fiscal stability as a pawn in their game to prop up the ultra wealthy and large corporations.