Last month the House of Representatives passed a bill that will increase taxes on the American people. Deceivingly called the “Inflation Reduction Act of 2022,” the IRA purports to tackle the 8.5% inflation rate in the United States.
Inflation has dramatically lowered American workers’ real wages, falling $3,400 since Joe Biden took office. Americans are rightly concerned — 70% of Americans believe that inflation is the biggest problem facing our country.
This bill does nothing to combat inflation. Democrats are again pouring gasoline on the inflation wildfire by spending more taxpayer money, this time to the tune of $430 billion.
Since 2020, government deficit spending has totaled $6.6 trillion. Combined with the Federal Reserve’s policy of quantitative easing, the money supply in the United States has increased an astounding 40% over the last two and a half years.
President Biden declared in early 2021 that inflation was “temporary.” Believing this, the administration and Congress continued to spend and spend and spend. In addition to the $1.9 trillion American Rescue Bill, a $1 trillion infrastructure bill was passed. In November 2021, with inflation rising, the House of Representatives passed the massive $2.2 trillion “Build Back Better” liberal wish list. Fortunately, the bill did not pass the Senate.
This timeline is important. It shows that President Biden and his congressional backers like Nancy Pelosi and my opponent Scott Peters, supported a liberal spending spree that ignited the inflation wildfire. The Inflation Reduction Act is just another irresponsible spending package that will fuel inflation.
Supporters of the bill argue that it includes $30 billion a year over the next ten years to reduce the deficit. Considering the United States paid $392 billion billion in 2021 in interest alone to service our national debt, combined with the IRA’s $430 billion in new spending, any attempt to defend this bill as fiscally responsible is laughable.
While President Biden and Scott Peters may truly believe that every problem in America can simply be fixed with more government spending, they fundamentally do not understand the inflationary effect of their approach.
Inflation occurs when too much money is chasing too few goods and services.
That is the situation America confronts today. Our economy has been flooded with printed money. Compounded by supply shortages, America faces the perfect inflation storm. Too much printed money is chasing too few goods and services. This is the only equation that matters when trying to stop inflation.
All evidence shows President Biden does not understand, or chooses to ignore, this basic economic fact.
The University of Pennsylvania’s analysis of the IRA concluded that it will actually increase inflation until 2024. That alone should have killed this bill.
The misery the IRA will bring does not end with additional inflation. Last month, America officially fell into a recession after GDP declined for two consecutive quarters. The IRA ignores the plight of the American economy and worker by raising taxes over the next decade by $450 billion.
As President Obama advised in 2009, the last thing you want to do when you are in a recession is to raise taxes. Why? Because higher taxes drive up consumer prices and discourages investments that create jobs.
The IRA also destroys American jobs by proposing radical environmental regulations that will add to the American energy crisis. Instead of helping San Diegans by lowering the cost of gas and attacking climate change through innovation, President Biden wants to impose further regulations on job creators and make it harder for America to become energy independent.
A recent study found that the IRA will “cause annual average job losses of 1.2 million and $7.7 trillion in lost economic growth. That’s an income loss of $87,000 per family of four—and an average increase in household electricity expenses of 23%.”
Our country cannot afford President Biden’s tax, spend, and regulate agenda.
I’m running for Congress to put an end to this fiscal madness. I will stand up to those who believe that every problem we face in our country can only be fixed by further deficit spending. I want American workers to keep their hard-earned money rather than ship it off to DC for politicians and bureaucrats to waste.
By voting for the IRA, Congressman Peters put partisan politics over attacking inflation. His vote will make the cost of living crisis in San Diego worse for his constituents. We need new leadership to put an end to ten years of failed polices Scott Peters has brought to Washington, DC, and San Diego.
Corey Gustafson is cofounder Dogleg Brewing Co. in Vista and a Republican candidate for Congress in the 50th District.