If it passes, the US Inflation Reduction Act would be a landmark legislative achievement. With provisions to accelerate America's clean-energy transition, control health-care costs, and restore some sanity to the tax code, it will not only curtail inflation but also bolster America's long-term competitiveness.
NEW YORK – US Senate Democrats’ compromise bill, the Inflation Reduction Act (IRA) of 2022, addresses not just inflation but also several key longstanding problems facing our economy and society.
There is a simmering debate about the causes of today’s inflation; but regardless of what side one takes, this bill represents a step forward. For those worried about excessive demand, there is more than $300 billion in deficit reduction. And on the supply side, the bill would mobilize $369 billion of investments in energy security and decarbonization. That will help bring down the cost of energy – one of the main drivers of current price growth – and put America back on track to reduce its carbon dioxide emissions by some 40% (from 2005 levels) by 2030.
These investments will yield far-reaching returns. The costs of climate-driven events (wildfires, hurricanes, tornados, and floods) will reduce our standard of living even more than today’s inflation will, and they are disproportionately borne by lower-income households, people of color, and future generations. These costs are far larger and more difficult to rectify than the costs of deficits.
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NEW YORK – US Senate Democrats’ compromise bill, the Inflation Reduction Act (IRA) of 2022, addresses not just inflation but also several key longstanding problems facing our economy and society.
There is a simmering debate about the causes of today’s inflation; but regardless of what side one takes, this bill represents a step forward. For those worried about excessive demand, there is more than $300 billion in deficit reduction. And on the supply side, the bill would mobilize $369 billion of investments in energy security and decarbonization. That will help bring down the cost of energy – one of the main drivers of current price growth – and put America back on track to reduce its carbon dioxide emissions by some 40% (from 2005 levels) by 2030.
These investments will yield far-reaching returns. The costs of climate-driven events (wildfires, hurricanes, tornados, and floods) will reduce our standard of living even more than today’s inflation will, and they are disproportionately borne by lower-income households, people of color, and future generations. These costs are far larger and more difficult to rectify than the costs of deficits.
To continue reading, register now.
Subscribe now for unlimited access to everything PS has to offer.
Subscribe
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