Quote:
Originally Posted by scottw
no...there is nothing in the legislation that will reduce inflation...that's has become widely evident...but it's a great name for the legislation  |
The bill will make small steps to help bring inflation back to normal levels, said Shai Akabas, the director of economic policy at the Bipartisan Policy Center.
"It will generally work in the right direction and help the Federal Reserve, which has the primary responsibility for getting a hold of inflation," Akabas said.
ECONOMY
What's causing inflation
There are three main ways the bill targets rising prices, according to Akabas. First, it plans to reduce the federal deficit, which is the difference between how much the U.S. government spends and how much it makes in taxes and revenue. When there's less money floating in the economy, there tends to be less demand and fewer price hikes, Akabas said.
Because there are several provisions to encourage spending in the bill, the net impact on inflation is unclear.
Second, it will promote the production of certain goods, mainly in renewable energy. Having more supply than demand could help lower some costs over time, he added.
Third and more directly, one provision of the bill will help limit the price growth of certain prescription drugs by allowing Medicare to negotiate their cost with pharmaceutical companies. Still, some of the biggest drivers of inflation, including food and energy costs, are not immediately addressed.