Does the Democrats' New Inflation Bill Have Anything To Do With Inflation?

Plus: The editors each analyze their biggest “I was wrong” moment from past work.

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Does the Democrats' New Inflation Bill Have Anything To Do With Inflation?

In this week's Reason Roundtable, editors Matt Welch, Katherine Mangu-Ward, Peter Suderman, and Nick Gillespie rail against the Inflation Reduction Act of 2022.

1:00: Sens. Chuck Schumer (D–N.Y.) and Joe Manchin's (D–W.Va.) Inflation Reduction Act.

29:28: Weekly Listener Question:

The New York Times has been running an "I Was Wrong" series by its opinion columnists, such as Paul Krugman being wrong on inflation, Michelle Goldberg on Al Franken, and David Brooks on capitalism. If Katherine were to have Reason editors write similar columns, what would the Roundtable members write about?

Mentioned in this podcast:

"The 'Inflation Reduction Act' Won't Actually Reduce Inflation," by Eric Boehm

"Supersizing the IRS Will Hurt the Working Rich, Not Fat-Cat Tax Evaders," by Liz Wolfe

"Schumer, Manchin Strike Deal To Raise Taxes, Cut the Deficit, Spend Billions on Climate Change," by Eric Boehm

"Biden Won't Close the 'Tax Gap,' but He Will Snoop on Your Bank Records," by Matt Welch

"Another Centrist Project Offers Mushy Technocracy To Soothe a Divided Country," by J.D. Tuccille

"Everyone Agrees Government Is a Hot Mess. So Why Does It Keep Getting Bigger Anyway?" by Nick Gillespie

"Biden Is Clueless About Inflation," by Nick Gillespie and Regan Taylor

"Public Trust in Government: 1958-2022," by Pew Research Center

Send your questions to [e-mail]. Be sure to include your social media handle and the correct pronunciation of your name.

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Audio production by Luke Allen

Assistant production by Hunt Beaty

Music: "Angeline," by The Brothers Steve

What are we consuming this week?

Nick Gillespie

• The Rehearsal

Katherine Mangu-Ward

• Persuasion

Peter Suderman

• STRAY

Matt Welch

• Bill Schulz's #RunningCommentary

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Comments

[Diane Reynolds (Paul.)]

I saw this series in the NYT and read a few...

I haven't had a chance to find out what *shudder* David Brooks was "wrong about" regarding capitalism.

[Bubba Jones]

He doesn’t actually say. He observes an outcome and then blames capitalism. It’s a typically self indulgent NYT column:

The most educated Americans were amassing more and more wealth, dominating the best living areas, pouring advantages into their kids. A highly unequal caste system was forming. Bit by bit it dawned on me that the government would have to get much more active if every child was going to have an open field and a fair chance.

[Á àß äẞç ãþÇđ âÞ¢Đæ ǎB€Ðëf ảhf]

Ah yes. This guy:

To have good leaders you have to have good followers -- able to recognize just authority, admire it, be grateful for it and emulate it.

He wouldn't know capitalism if you gave him the Wikipedia URL.

[The Margrave of Azilia]

Maybe libertarian capitalism *would* be a Grave Menace if it was implemented in full - but that doesn't exactly describe the situation we have now, so I doubt we'll find out.

Which is why I'm skeptical of those who look at the evil fruits of the regime and say, "look at what capitalism did!"

May as well blame the Flat Earth Society.

[Its_Not_Inevitable]

It's been said that the only success Socialism has ever had has been blaming Capitalism for all the problems Socialism causes.

[SuzanneRodanthe]

I made $30,030 in just 5 weeks working part-time right from my apartment. When I lost my last business I got tired right away and luckily I found this job online and with that I am able to start reaping lots right through my house. Anyone can achieve this top level career and make more money online by:-
Reading this article:>>>> https://oldprofits.blogspot.com/

[Diane Reynolds (Paul.)]

You know it's funny, I've read that passage several times and it hit me, if I'm correct, he's essentially re-fluffing a book he wrote a few years ago.

[dan1650]

I'm from the government and I am here to give your child an open field and a fair chance. Now step aside and come junior we are going to the reeducation camp and teach you to be successful. After all, children are equal in intelligence and ambition and only need a little help. The bad news is of course everything the government touches it ruins. That and there will no longer be people to work more menial type jobs and if your plumbing breaks just buy a new house.

[VULGAR MADMAN]

The bill has everything to do with increasing inflation.

[OpenBordersLiberal-tarian]

I bet the Reason employees who didn't vote for Biden are feeling pretty silly right now. His Presidency has basically been one success after another. Especially on the most important metric for Koch-funded libertarians: Charles Koch's net worth. It's up almost $9 billion this year.

#InDefenseOfBillionaires
#LibertariansForBiden

[Mother's Lament]

"I bet the Reason employees who didn't vote for Biden are feeling pretty silly right now."

*chef's kiss*

[kcuch]

"I bet the Reason employees who didn't vote for Biden are feeling pretty silly right now."

Are there any who did not?

[Pear Satirical]

Yes, it's going to make inflation worse!

[VULGAR MADMAN]

Didn’t you hear? Corporations create inflation by raising prices!

[Homer Thompson]

I thought inflation was caused by selfish politicians who cannot resist the urge to virtue signal.

[Diane Reynolds (Paul.)]

But better!

[BestUsedCarSales]

I guess Keynes did argue that one should raise taxes during periods of inflation. Or is that MMT?
Either way, eh fuck em.

[Eeyore]

MMT says they should steal all of our money during periods of inflation. What we don't have we can't spend.

[Its_Not_Inevitable]

Both.

[NOYB2]

At this point, the Keynesian stimulus to the economy is the equivalent of hooking up a two day dead corpse to the high voltage lines in hopes of at least getting a little bit of a wiggle out of it.

Unfortunately, all that is happening to the corpse of this economy is that it is starting to stink, smoke, catch fire, and melt down in a puddle of burning fat.

[JesseAz]

Short podcast. How long does it take to say most everything since 2016?

[JesseAz]

For

29:28: Weekly Listener Question:
.
The New York Times has been running an "I Was Wrong" series by its opinion columnists, such as Paul Krugman being wrong on inflation, Michelle Goldberg on Al Franken, and David Brooks on capitalism. If Katherine were to have Reason editors write similar columns, what would the Roundtable members write about?

[Social Justice is neither]

You letting them off for their takes during Obama and their rapid dive into being progressive shills then?

[The Margrave of Azilia]

Here's an interesting book from an obscure publisher (HarperCollins):

'Fans of Feminist Baby by Loryn Brantz will love this board book about gender expression and being true to oneself.

'"Is it a boy? Or a girl?"

'“WHAT'S IT TO YA?!”

'Our little bundle of joy has arrived—to dismantle gender norms!

'A joyful baby refuses to conform to the gender binary and instead chooses toys, colors, and clothes that make them happy. This tongue-in-cheek board book is a perfect tool to encourage children to love what they love and is also a great baby shower gift for all soon-to-be-parents.'

https://www.harpercollins.com/products/bye-bye-binary-eric-geron?variant=39651619405858

[Diane Reynolds (Paul.)]

a great baby shower gift for all soon-to-be-parents.'

More like a golden shower gift while they tell you it's raining.

[MatthewSlyfield]

A decent rule of thumb is that any bill in Congress will do the opposite of what it's title says.

[Rev. Arthur L. Kuckland]

In that case I want to introduce the KAPAMA bill
The keep American progressives and Marxists alive bill

[Aloysious]

No, it doesn't.

The name is merely marketing for the rubes; i.e. their voters.

[Liberty Lover]

Does the Democrats' New Inflation Bill Have Anything To Do With Inflation?
Yes, it will INCREASE inflation dramatically.

[Thomas L. Knapp]

Ah, "electric bike Twitter."

I do not support government subsidies for electric bikes.

On the other hand, if there are going to be vehicle subsidies, that's a reasonably good one.

My electric bike is a "cheap" ($650 on sale) Chinese model. If I'm going somewhere alone (as opposed to my wife driving), it's how I get there. But it's something of a "luxury" good insofar as we do have a family car.

In my particular area (north central Florida), though, I see a LOT of people using bikes as their primary mode of transportation to work, to the grocery store, etc. Maybe they can't afford cars, maybe their licenses got suspended for DUI, maybe they're just annoying eco-hippies, etc., but their numbers are already big enough to probably slightly reduce road congestion (lots of bike lanes and bike paths around here).

That's not a bad thing, and the cost of putting more people on bikes might well may be lower than building more roads to reduce congestion.

Personally, I'd rather abolish the state and let the market handle the whole thing, though.

[dan1650]

My new electric bike finally was delivered, and it is great. I proudly went down the street to the grocery store and noticed people admiring it. After shopping and carrying out the bags I suddenly realized there was no trunk to put the bags in. I laughed and looked around to make sure no one notices and called my wife to drive down and get them. On the trip home I decided on a way to carry things on the bike and stopped at a convenience store to buy a little beer to celebrate. The 24 pack was on sale and I grabbed one and figured out a way to balance it on my lap to get it home. As I turned out of the store lot it flipped off and scattered cans all over the busy street with cars exploding cans all over the road. This still was not enough to bring me down until a mile from the house the bike slowed and stopped and I remembered the warning to charge before using. Pedaling the bike for the last mile was not fun. Without the motor to assist it is really hard. I decided it wasn't for me and parked it in front of my house with a for sale sign and a short time later it was gone. I still have no idea who stole it in broad daylight, but I hope it gives them as hard a time as it did me.

[Union of Concerned Socks]

Fuck Joe Biden.

98 days.

[Joe Friday]

Yes, it does long term with closing of the tax loophole for carried interest and beefing up the very short staffed IRS, and short term with drug prices.

The climate change initiatives are hard to predict, but as investments in the future we can hope they as successful creating markets and therefore lower prices as the time limit on incandescent bulbs by Congress did for LED bulbs. 5 years ago they were $20 each.

[The Team Struggling]

Can you imagine if corporate directors were held to a standard of just "hoping" an investment will generate a positive return? Yo, retard, every investment is an investment in the future. The govt is simply arrogant enough to think they can (or should even try to) create a future through market-distorting policies to artificially generate that positive return--hopefully. Experience shows this sort of wisdom is better revealed by Smith's invisible hand than whimsical diktats.

[Joe Friday]

As I noted, the feeds created a market for LED light bulbs and they went from $20 to $2 each in a very short time.

Any investment is a gamble on the future, private or government, but none but the government has the ability to impact the future so strongly, and in this case in tune with what all but crackpot scientists say is coming.

[The Team Struggling]

The existence of LED bulbs available for sale is what creates the market for them, not govt. All govt can do is intercede in the functioning of that market. Accepting for the sake of argument your assertion that govt policies were solely responsible for lowering the price of LED bulbs which would not have happened otherwise, that still does not automatically mean it was a net benefit for society. Govt forecloses the possibility of natural innovation when it prescribes a singular approach.

If you agree that investments always involve risk, why are you so satisfied that "hope" will mitigate it? Do you honestly believe that "scientists" are better at predicting the future than, say, economists? And on what basis do you justify binding the whole of American society to follow such a flimsy faith when compared to the revealed wisdom of free people constantly pursuing their rational self-interests (which often involves *voluntary* cooperation with others)?

[dan1650]

The bill does not close the carried interest loophole. It only extends the time necessary to claim it. The carried interest loophole allows investment managers to pay the lower 20 percent long-term capital gains tax rate on income received as compensation, rather than the ordinary income tax rates of up to 37 percent that they would pay for the same amount of wage income.
The IRS that had less people handling paper tax forms years ago is not understaffed. They are incompetent and inefficient. The long-term cost of adding tens of thousands of employees will eat away any revenue recovered. Most IRS employees work from home unsupervised. Reforming the IRS with updated software and computers and bringing employees back into the office and giving them the tools necessary would be a onetime expense instead of the growing expense of tens of thousands with wages, benefits and retirement increasing as years pass. In the near future all tax will be filed electronically, and it will be overstaffed if thousands more are hired.
The government investing billions into solar and battery and picking winners will turn out badly when a newer technology emerges over the next decade to replace the antiquated solar and battery technology. The government subsidizing one technology will disrupt innovation and the development of better sources of energy. Government subsidies kept oil and gas around longer and has kept newer better sources struggling for investment to develop.

[rbike]

Hey Joe, the Democrats aren't raising taxes in anyone making less than $400,000. You and SPB nat not be happy with your salary but the rest of us are glad. See

https://www.bing.com/search?q=Manchin+outright+lie&efirst=0&ecount=50&filters=tnTID%3a%2248E38797-8F2A-4d56-B353-B5343BCB1852%22+tnVersion%3a%224691024%22+Segment%3a%22popularnow.carousel%22+tnCol%3a%2225%22+tnOrder%3a%22887b4a8a-640e-42f3-aa04-e211ae01b221%22&form=HPNN01

Teach those lying Fox people that they can't lie their way out of BBB. Maybe you can learn from Machine. Of course, us little redneck working men will be the ones who end up paying this as any tax increase on corporations will be passed on to us or we will lose our jobs. But you don't care. You get your .50 cents.

[Rev. Arthur L. Kuckland]

ENB "I was wrong about literally everything I have ever written"

Sullum "I was wrong to become a 'journolist'"

Scott "I was wrong about grooming being good"

Bohem "I was wrong to think the readers would forget that i stumped for biden

[TJJ2000]

Um....... Not unless you think Inflation is controlled by the weather and the weather is controlled by Nazi's (National Socialists).

[Flaco]

Oddly, the CNN article that KMW insists everyone should read isn't in the list of links contained in the story.

https://www.cnn.com/2022/08/01/politics/kyrsten-sinema-democrats-big-week-for-biden-presidency/index.html

You're welcome.

[dan1650]

Democrats simply renamed and recycled the same old agenda claiming now it will reduce inflation. Nancy Pelosi thinks it takes government spending to reduce deficits, so this bill is no surprise. Democrats used the pandemic, which they called an opportunity rather then a crisis, “This is a tremendous opportunity to restructure things to fit our vision,” to further their agenda knowing they had a chance to rig an election or two while people were distracted and are doing what Biden and other Democrats campaigned on. What is happening now is intentional and what they referred to as "a little pain will be necessary to achieve our goal." People that vote Democrat vote emotionally instead of intellectually. The left sets them up with 24/7 propaganda convincing them good is evil and such things as America First and Making America Great Again are agenda to be reviled and rejected. Trump as the representative had to be completely vilified and discredited and those that support him condemned as racist and Nazis. Modern progressives assume moral and intellectual authority. Consequently, their supposedly superior ends naturally justify almost any means necessary to achieve them. They sincerely hold the belief the people should not be trusted to choose their leaders and they must intervene with anyway they rig elections being justifies as being what is best for the people.