Inflation would continue under Manchin’s spending bill, over 230 economists warn

Contrary to President Biden and Democrats’ claims, the Inflation Reduction Act is projected to burden the U.S. economy and contribute to rising inflation, according to a letter from 230 economists to House and Senate leadership.

Economic experts assert that Manchin’s Inflation Reduction Act will exacerbate inflation rather than reduce it.

The economists claimed in the letter, which Fox News Digital first obtained, that the U.S. economy is at a “dangerous crossroads” and that the “inaptly named ‘Inflation Reduction Act of 2022’ would do nothing of the sort and instead would perpetuate the same fiscal policy errors that have helped precipitate the current troubling economic climate.”

After more than a year of discussions among Democrats, Sen. Joe Manchin, D-W.Va., declared last week that he and Senate Majority Leader Chuck Schumer, D-N.Y., had come to an agreement on the $739 billion reconciliation proposal.

The $433 billion in proposed government spending is cited by economists as evidence that these increases in taxes “would create immediate inflationary pressures by boosting demand, while the supply-side tax hikes would constrain supply by discouraging investment and draining the private sector of much-needed resources.”

They add that the corporate minimum tax, which they claim will undermine efforts to reestablish functional supply chains, is of “particular concern.”

Furthermore, the prescription medicine portions of the plan “would impose price controls that threaten healthcare innovation, creating a human health toll that would add to the financial woes Americans are already experiencing.”

Nobel laureate Vernon Smith, ex-Chairman of the Council of Economic Advisers Kevin Hassett, ex-Director of the Office of Management and Budget Jim Miller, and ex-President of the Federal Reserve Board from 1986 to 1989 Robert Heller are just a few of the famous signers.

In the letter dated Aug. 3, there were also professors from the University of Chicago, Princeton University, Duke University, University of Virginia, Columbia University, and the University of Notre Dame, among other institutions.

Although they concur that there is an “urgent” need to fight inflation, the experts come to the conclusion that Manchin’s plan is a “misleading label” attached to legislation that would have the “opposite effect.”