Latest Big Government Spending Bill Threatens Continued Inflation
There is a real threat that the rate of inflation could go right back up due to the big government spending policies coming out of Washington.
Misnamed ‘Inflation Reduction Act’ Doubles Down on Inflationary Policies
Arlington, Va. – In response to today’s report from the Labor Department that the consumer-price index rose 8.5% in July from the same month a year ago, the Chief Economist and Executive Vice President of Policy at the American Legislative Exchange (ALEC) Jonathan Williams issued the following statement:
“While some will say this morning’s consumer price index report suggests that inflation may have peaked, hardworking Americans still face crushing high levels of inflation— and there is a real threat that the rate of inflation could go right back up due to the big government spending policies coming out of Washington. Increasing spending and tax burdens at this critical juncture is economic malpractice. Washington’s latest tax-and-spend proposals would kill hundreds of thousands of jobs, further reduce real wages and make gas and home heating fuel more expensive. These proposals double down on the exact policies that caused record inflation and economic malaise in the first place. Growing government even more is not the solution — it is the problem.
“Policies coming out of Washington would likely lead to continued high inflation and gas prices. They would also guarantee the IRS will ramp up its targeting of hard working Americans. The misnamed “Inflation Reduction Act” would double the size of the IRS, hire an astounding 87,000 new IRS agents, and count on these agents to collect an additional $200 billion from American families and small businesses through audits.”
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The American Legislative Exchange Council is the largest nonpartisan, voluntary membership organization of state legislators in the United States. The Council is governed by state legislators who comprise the Board of Directors and is advised by the Private Enterprise Advisory Council, a group of private, foundation and think tank members. For more information about the American Legislative Exchange Council, please visit: www.alec.org.