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I mean, wasn't there an "Inflation Reduction Act" passed ~1 year ago...seems pretty correlated? and no mention in the article?
by dpflan 3y ago
I mean, wasn't there an "Inflation Reduction Act" passed ~1 year ago...seems pretty correlated? and no mention in the article?
- mc32 3y agoHa, please don't take the names of Acts of Congress as truthful assertions. Spending, any spending increases inflation. One can ague some types of spending are necessary, but the names of Acts are often misnomers.
- jondwillis 3y ago“Immediate spending for dubious potential lower inflation in the future, probably, we hope, act” doesn’t have the same ring to it. Side note, congress should be banned from adding biased names or acryonyms to bills. Just explain it. If the acronym spells something cute, try again.
- davedunkin 3y agoNames of bills should be given by a GPT that reads the bill and the CBO analysis of the bill.
- laidoffamazon 3y agoThe inflation reduction act reduces forward-looking government spending (which is why it was able to be passed via reconciliation) so this is incorrect.
- Auracle 3y agoAs a matter of fact, you could probably take the inverse of the names and they’d be more truthful. A massive spending bill to fight inflation nonsense. Increasing taxes would have helped. Stopping the student loan pause would have helped. Injecting more money into the economy? Not so much.
- laidoffamazon 3y agoThe factory building and infrastructure spending passed over the last two years is one of the reasons why the labor market has remained steady despite a higher federal funds rate.
- dpflan 3y agoWhat’re you saying is the precise implication here?
- laidoffamazon 3y agoKeynesianism has a lot of juice left in it and the IRA, CHIPS, and infrastructure bills are creating a manufacturing boom. There are more manufacturing jobs now than there were before the pandemic.
- dpflan 3y agoYes. Are you saying that because there is demand for manufacturing jobs, wages for such jobs are higher, and that inflation should remain higher but unexpectedly is not?
- laidoffamazon 3y agoIncreased interest rates are decreasing inflation by reducing economic activity but it's being countered by increased spending in green and semiconductor sectors. It nets out to a positive.
- dpflan 3y agoThank you for clarifying. Agreed. In the end it’s all a game of routing dollars around. It must be a crazy max flow problem.
- room500 3y agoThe Inflation Reduction Act was a massive piece of legislation. I'm curious which pieces would have this short-term (< 1 year) deflationary impact. My gut says that the Fed interest rates and natural cooling of the demand curve post-Covid-lockdown is more impactful. But I would love to learn more.
- dpflan 3y agoI too would like to know, not entirely discount it like some are.