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Biden’s Inflation Reduction Act Bust

Posted on Friday, October 20, 2023
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by AMAC Newsline
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AMAC Exclusive – By Andrew Shirley

President Joe Biden delivers a speech on the U.S. economy and “Bidenomics”, Thursday, September 14, 2023, at Prince George’s Community College in Largo, Maryland. (Official White House Photo by Adam Schultz)

A new survey out this week found that inflation is causing some 60 percent of workers to rethink their retirement plans – or put retirement off entirely. The findings are yet another sign that, more than one year later, Biden’s “Inflation Reduction Act” (IRA) has been a complete bust, as conservatives predicted.

According to the findings from MFS Investment Management, 75 percent of Americans now say they will have to save more for retirement than they originally thought. Two-thirds of respondents said they are not confident they can retire at the age they want, while nearly a third said that they will not be able to retire at all.

What’s worse, there doesn’t appear to be much relief ahead. Earlier this month, Federal Reserve Governor Michelle Borman revealed that America’s crushingly high-interest rates would likely have to go even higher in an attempt to bring down inflation.

Although inflation has eased from record highs of over nine percent last year, it currently still sits near four percent – nearly double the Fed’s target rate of two percent.

Speaking at a conference in Canada, Borman stated, “Inflation continues to be too high, and I expect it will likely be appropriate for the committee to raise rates further and hold them at a restrictive level for some time to return inflation to our 2 percent goal in a timely way.”

For many Americans – particularly those looking to build wealth ahead of retirement – the combination of soaring inflation and sky-high interest rates has been financially devastating. Yet the rampant government spending of the past three years has made the hope of a quick resolution to America’s inflationary crisis less and less likely.

Borman’s announcement came on the heels of the Biden administration’s celebration of the one-year anniversary of the IRA in August. Biden sold this spending package to the American people as a historic investment that would bring down inflation by growing the economy from “the bottom up and the middle out.”

Notably, Biden dismissed criticisms at the time that much of the package just appeared to be a slimmed-down version of his failed $3.5 trillion spending bill, the “Build Back Better Act.”

Now, more than a year later, even Biden admits that he was disingenuous when describing the bill. “The Inflation Reduction Act — I wish I hadn’t called it that because it has less to do with reducing inflation than it does to do with dealing with providing for alternatives that generate economic growth,” the president said at a White House event commemorating passage of the bill, in what should have been a shocking admission of political dishonesty.

Subsequent analysis also found that the package will end up costing the American people far more than they were told. The Congressional Budget Office estimated that the IRA would cost $783 billion. But Goldman Sachs predicts that the actual total amount will exceed $1.2 trillion.

The overwhelming majority of this spending comes in the form of tax incentives for green energy, with billions more indirect outlays for certain experimental technologies. The White House’s own Office of Management and Budget now estimates that the bill will hike deficits $216 billion between now and 2031.

With much of the money in the IRA now beginning to be distributed, Americans are seeing just how empty Biden’s promise that the bill would “curb inflation” was.

For instance, billions of dollars were allocated under the IRA to so-called “carbon capture technology” that included the building of controversial CO2 pipelines crisscrossing the country. But those projects – funded by taxpayer dollars – have only caused energy prices to rise even more.

From 2022 to 2023, the U.S. has already directly paid out over $250 billion to “clean energy” initiatives. Most of these payouts have taken the form of tax incentives and subsidies for large corporations to fund projects they were planning on doing regardless. While the companies themselves get richer, the American people see little benefit.

Meanwhile, the country’s debt has continued to spiral out of control. As of September, Biden had already added nearly $2.5 trillion to the national debt – an increase of nearly nine percent in less than three years.

Republicans’ success in flipping the U.S. House last year has temporarily staved off more trillion-dollar boondoggles like the IRA. But with the 2024 general election now coming into focus, Biden and his Democrat allies are no doubt gearing up for a push to create a new Democrat trifecta and double down on their failed agenda.

Andrew Shirley is a veteran speechwriter and AMAC Newsline columnist. His commentary can be found on X at @AA_Shirley.

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PaulE
PaulE
4 months ago

An actually accurate description of both the IRA and the true intent of the Biden administration concerning both inflation in general, as well as the larger economy. It took long enough for the folks running AMAC to acknowledge the truth. Why no mention of the RINOs in the Senate, led by Mitch McConnell providing their assistance in getting the bill passed into law and messing up this country for at least the next decade.

The IRA was NEVER about taming inflation. The details of what was in the bill were available for everyone to read will before the bill game up for the final votes. The IRA was simply a smaller version of the Green New Deal vision the Democrats have been hyping for years, with the predictable results of higher energy prices and inflation rippling through the broader economy.

As for the real costs of the IRA, don’t forget those enacted policies will be impacting the economy for at least the next 10 years and serve to maintain elevated levels of inflation long after Biden is gone. When all is said and done, the total cost of the IRA may be well above $3 trillion dollars. When you factor in the hit to American productivity and competitiveness on the global stage, as measured by GDP, the estimate offered by the author is significantly under-estimated. So, in an era where we now have trillion dollar plus annual deficits, this year it will top $2 trillion dollars, and an exploding national debt rapidly marching towards $40 trillion dollars in the next 5 years, the options for effectively dealing with this man-made crisis brought about by allowing the grossly incompetent and ideologically insane to run this nation are rapidly shrinking. You don’t allow an arsonist carrying two 5-gallon cans of gasoline and flicking a lighter to move into your house and expect nothing bad to happen. You know what the results will be, if you have any functioning brain cells left. The difference is in our current situation, is that we have sat by and watched the arsonist dump the gasoline all around the inside of the house for the last 2 1/2 years and are now just passively waiting for the dementia patient to flick the lighter one last time. What could possibly go wrong? That was a rhetorical question.

David Davidme
David Davidme
4 months ago

We The People of America now have a Totally Unlawful and Unconstitutional Dictatorial Regime in Washington, DC!!!! If you are a Democrat you are in Support of this Evil Socialist Dictatorial Regime!!!! If you are a Republican (Lackey/RINO) Party Supporter, You are Supporting a Losing Cause as they have Not the Courage to Aggressively Stand and Fight For Our True America!!!! Everything that has Happened to Our True America over the past 2 1/2 years has been orchestrated by the Deep Dark State through the Domoncrat Socialist Party by their Brain Dead, Fraudulent, Criminal and Shill/Puppet/Fallguy President O’Biden!!!!!
They now have their Evil Anti-American Agenda in Full Swing and are Being Allowed to Destroy Our Rule of Laws, Our Constitution, Our Judiciary, Our Economy, Our Energy Independance, Our Personal and National Security, Open Borders where Criminal, Terrorists and all Other Illegal Immigrants can Just Walk into America for Taxpayer Support and Our Economic Deficit Spending for Their Votes to Further Their Evil Demoncrat Socialist Party along with the Deep Dark States and Their Destructive Agenda Upon We The People and Our True America!!!!
Wake Up, Wise Up and Rise Up America!!!! We Are in Very, Very, Extremely Serious, Grave and Dire Danger “From Within” by Local, State the Washington, DCeivers, China, George Soros and his Henchmen, the Clinton Klan and Sadly many other Subversive Groups both Foreign and Domestic!!! This Anti-American Madness Must Be STOPPED!!!
RE

John
John
4 months ago

The Socialist Democrats and elitist are destroying our country and economy!

Bob L
Bob L
4 months ago

As long as the federal government keeps spending money that does not actually exist, and I don’t narrow it down to just the Biden administration, because Congress is empowering the spending by approving the creation of the new fictitious money which the fed then creates… Thus driving inflation through the roof.
Biden’s Inflation Reduction Act is pure fiction and every time he asks for billions more for this and that, it proves the lie.

kdesq
kdesq
4 months ago

Inflation=100% caused by the government and the Federal reserve. People working don’t cause inflation, people spending money doesn’t cause inflation, sure supply and demand can cause prices to fluctuate, but it does NOT cause inflation. Only printing more money chasing after the same or less goods causes inflation, nothing else. So, the same Fed printing money to buy “bonds”, worthless by the way, from the federal govt is what caused inflation, so they kill the housing industry, people getting other loans, etc to “fix” what they caused. What a complete and total joke.

Larry
Larry
4 months ago

There is an onslaught on experienced workers entering the job market … they are all 65+

Randall L. Beatty
Randall L. Beatty
4 months ago

When a lot of these people that think what is going on in this country so good when people see taxes go up no social security anymore then it will be to late the damage is done for many years some people need to wake up and see what Biden and Washington is doing to this country we need to clean house up there and that means both sides.

Stephen Russell
Stephen Russell
4 months ago

Been a pure Takeover act

J. FARLEY
J. FARLEY
4 months ago

Inflation reduction act! MY ASS!

James E Jones
James E Jones
4 months ago

What else is new? Everything Biden has done since being President has been a “BUST” for our country, That is why we are in such terrible shape and seniors’ quality of life has fallen so much, and will take a long time to recover (if possible).

Robert Zuccaro
Robert Zuccaro
4 months ago

You don’t have to explain the term “inflation” to me; I just got back from Walmart. Walmart is about the cheapest store to grocery shop at but even some of THEIR prices made me gasp! $21/bag of Halloween snack candy? I firgure it’s cheaper to buy the $16 Swanson Lasagne and ladle portions out!

Thinking
Thinking
4 months ago

Bidenomics doesn’t work. From the bottom up and the middle out is a fantastic fairy tale. Like telling Iran don’t don’t don’t. It means nothing. But TRICKLE DOWN WAS ALREADY TAKEN. He had to come up with something else. A Don’t warning can be interpreted so many ways none of which will be what ole Joe wants it to mean.
He is creating the 1930’s with his so called climate incentives and tax rebates. Big business is getting richer, you know the ones he talks about as paying their fair share in taxes. Only the American people are going broke and soon we will all stand in breadlines. And Gates with his experiments to change the environment is getting richer but the environment is killing us with these experiments. Stop messing with Mother Nature she knows what she is doing.

Lloyd Grisham
Lloyd Grisham
4 months ago

We all know that Biden is not running things. His brain doesn’t work very well. It is the people behind the curtain that we should worry about. They Must be stopped or this country will continue to go downhill. Anyone who votes for the continuation of this administration is responsible for the certain decline of this nation.

Drue
Drue
4 months ago

I truly hope that all of the democrats see the light before Election Day. You may hate Trump yet he was a much more effective President than sleepy Joe. No wars, secure border, low energy costs and inflation, strong military and low crime. This country cannot afford another free spending President. Get your collective heads out of your butts and vote for someone who is competent.

Jimmy P
Jimmy P
4 months ago

Has ANYTHING these losers have done improved anything?????
Sobering facts are the reported Border Patrol arrests of suspects on the FBI Terror Watchlist at the southern border:
FY2017 – 2
FY2018 – 6
FY2019 – 0
FY2020 – 3
FY2021 – 15
FY2022 – 98
FY2023 – 151 (so far)
Since the start of 2021, over 1.5 million got-aways.
Intelligence failures
Global wars
Terrorism exploding
Southern border disaster
Terrorists on the terror database walking into our country
Child sex trafficking
Fentanyl crisis
Inner city crime
Inflation
Economy
WHAT A DISASTER THIS OATMEAL BRAIN HAS BEEN!!!!!

Jimmy P
Jimmy P
4 months ago

Why do Democrats and RINOS hate our great nation so much???????

jocko
jocko
4 months ago

WHY IS THISCANCEROUS TUMOR ALLOWED TO DESTROY OUR NATION ? AND liberals TO ? WEMUST RID OUR NATION OF THE libs AND illegals, STAT, TO MAGA

Theresa Coughlin
Theresa Coughlin
4 months ago

Not only did the Inflation Reduction Act not reduce inflation, it also did not provide alternatives that generate economic growth. If anything, the IRA made things worse.

Kyle Buy you some guns,and learn how to shoot
Kyle Buy you some guns,and learn how to shoot
4 months ago

I long for the 40’s and 650’s again. Kyle L. Long live 2 for a penny candy.

Sue
Sue
4 months ago

At 71 and being retired since 2010 to take care of my Mom, who has in 2020 gone to her heavenly reward, I have think about rejoining the work force. With my health condition I am limited to what kind of work I can do. Mentally, I am all there, physically not so much.

P2burner
P2burner
4 months ago

Inflation reduction act…HA HA HA! Spending money to “reduce” inflation is like screwing to end prostitution. Ain’t gonna happen.

Nick
Nick
4 months ago

The Democrats say believe what I tell you not what you see everyday in your life

history
history
4 months ago

Christopher Columbus who discovered America in 1492 would be a conservative Republican today because he believed in freedom.

David Millikan
David Millikan
4 months ago

And the deficit rises over $1.7 Trillion more since January 2023, and the year isn’t over. Yet, Dictator Beijing biden’s Inflation INCREASE Act has even added more debt each year since passed with Inflation still INCREASING and increased taxes each time.
That’s bidenomics for you even as he and Yellen keep lying. Now, Yellen says we can afford paying for 2 WARS. Of course she says that cause neither one of them are paying for it.
Then add they want to increase federal employees minimum wage to $50/hr..
That’s democrats.

M.B.
M.B.
4 months ago

Everything this administration has implemented is a bust. His “BUILD BACK BETTER” slogan. What has been built, and what’s better? I’ve listed all the blunders on the website years ago and they keep piling up. 14 more months . . . What’s next ?

marty
marty
4 months ago

Bidum(b)nomics would be a more truthful spelling for this fiasco !! Build Back Better, Inflation Reduction Act, more lies. This moron hasn’t been right in almost 5 decades in Washington D.C., he should have been left in his basement !! O’Biden *O’Bumbler’s third term) is on the brink of bringing America down or World War III !! But, don’t worry, Kamala can take over ??. WE ARE DOOMED !! THANKS DEMs

Robin W Boyd
Robin W Boyd
4 months ago

The current economic situation in the U.S., mostly due to wrong minded decisions made by politicians on both sides of the aisle, but mostly due to Progressive Democrats, less workers are going to be able to retire. Since this will cause less jobs available, if our economic situation is not addressed better from government agencies, more senior citizens will need to be killed off the way government decisions killed off so many with decisions made during the COVID planned-emic. It is not a comfortable time to be a senior citizen in the U.S.

BACKWOODS
BACKWOODS
4 months ago

Someone tell me one thing any Democrat has said or done to make our lives better.
Obama 401K down $39000 in 8 years Gas as high as $4.25 a gallon
Trump 401K up what Obama lost in 3 years gas down to$2.18 a gallon and dropping
Biden 401K Down $30000 in 3 years in 3 years gas $4.10 a gallon and dropped to above $3.50 most of the time. Drained the Oil Reserves. Poking the BEAR, laundering money in Ukraine, open boarder policy with those fighting age males leaving their families behind you KNOW Humanitarian.
AWAKE YET?
Inflation at 4% my a double s. Can of soup before Biden $1.29 now $3.89 if that is 4% I missed something in math class.
Oh and by the way no carbon no life!

Glen
Glen
4 months ago

Bidenomics is doing exactly what it was designed to do: Destroy the country so the globalist can save the world with their one world agenda!

Suz
Suz
4 months ago

Senile!

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