Inflation Reduction Act’s Failure to Lower Electricity Costs: A Visual Guide – MishTalk

TL/DR –

The Inflation Reduction Act (IRA), enacted under Biden’s administration has increased inflation rather than reducing it, according to critics. The IRA, an energy policy targeting climate change, has largely been thought of as the Green New Deal under a different name, leading to increased energy costs for consumers and businesses. The initial cost estimate of $385 billion has jumped to over $1 trillion, and this doesn’t account for the rise in energy costs.

Biden’s Inflation Reduction Act: An Inflationary Disaster?

The energy and inflation outcomes of Biden’s Inflation Reduction Act (IRA) have been lacking in impressiveness. The act, known synonymously as Biden’s energy policy, has primarily been a climate policy, causing what some refer to as an inflationary disaster.

The Inflation Reduction Act: A Disguised Climate Bill?

As Bloomberg pointed out in August 2022, the IRA has been considered a climate bill in disguise. It has sparked debate about whether its contents truly pertain to inflation or if it was simply a clever tactic to address rising energy costs.

Rhetorical Genius or Misleading Moniker?

Despite some calling the naming of the bill a “stroke of rhetorical genius,” Biden has admitted that the Inflation Reduction Act could be seen as a misnomer, causing confusion amongst the public.

The Green New Deal Rebranded?

Accusations have arisen suggesting that the IRA was simply a strategy to pass the Green New Deal under a new name. This speculation is fueled by the belief that many Americans may not support their tax dollars funding unproven green energy projects.

Green-Energy Price Shock

The Wall Street Journal has also commented on this issue, pointing out the soaring electricity prices as a result of Biden’s green-energy agenda. This has happened despite claims from the White House that the President’s climate agenda is reducing electric-power rates.

The Real Cost of the IRA

The IRA’s cost has been a contentious issue, with estimates predicting that it’s much worse than initially suggested. According to Penn Wharton, the actual cost of the act might be over $1 trillion.

Impact on the Bond Market

For bond market bulls, the past month has been challenging due to inflationary pressures like the IRA, energy policy, regulations, among other factors. This has led to bond market instability, posing challenges for investors.

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