The Path Ahead for Biden: Overcome Manchin’s Inflation Fears
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A key Democrat’s decision to pull support from the president’s sprawling climate and social agenda is rooted in the scope of the bill.
Senator Joe Manchin III, the West Virginia Democrat, effectively killed President Biden’s signature domestic policy bill in its current form on Sunday, saying he was convinced the spending and tax cuts in the $2.2 trillion legislation will exacerbate already hot inflation.
Economic evidence strongly suggests Mr. Manchin is wrong. A host of economists and independent analyses have concluded that the bill is not economic stimulus, and that it will not pump enough money into consumer pocketbooks next year to raise prices more than a modest amount.
The reason has to do with the pace at which the bill spends money and how much it raises through tax increases that are intended to pay for that spending.
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