Has Biden done anything right since he took office?
These are the facts as I, a lowly bus driver, understand them. Government spending is by nature, inflationary. That means the money supply increases, so there’s too much money chasing too few goods (prices go up). If that increase is matched by an increase in wages, the net effect is zero. But inflation is over 9% while wages have only gone up about 2.5%. That’s a 6.5% deficit that all of us absorb as a tax increase on disposable income. Simply put, you can buy 6.5% less stuff today than you could a year ago, even though you got a raise, and keep in mind, not everyone did.
For those too young to remember the Carter years, when inflation outpaces wages, demand falls, unemployment increases, and the economy shrinks. When it lasts more than two months, you go into recession. Jimmy Carter tried to spend his way out of recession; it didn’t work for him, and it won’t work for Joe Biden. When Biden calls his plan the Inflation Reduction Act, he’s putting lipstick on a pig.
Find your congress members here: KEY VOTE: “NO” ON THE “INFLATION… | Heritage Action For America
By the way, don’t let your liberal friends tell you that this thing will reduce prescription drug costs by requiring price negotiation. If you read the bill, you’ll find that it requires offers and counteroffers based on established government price limits.
So a drug manufacturer submits a bid, the government counters, and this is supposed to be the negotiation process at work. The problem lies in the details. Under Biden’s Inflation Reduction Act, under no circumstances can the government accept a price above a predetermined limit.
Call me naïve, but I don’t think that’s how a negotiation works, it’s how extortion works. Ultimately, drug supplies will be limited, and if drug companies can’t earn a profit on what they sell to the government, they’ll just pass the cost on to their other customers, you and me.
PS – Contact your congressmen (women) by any means necessary, and let them know that you know, this is a bad deal.