Biden’s Act Boosts China, Trims Medicare, Hurts US Jobs
TL/DR –
The article discusses the claim by Donald Trump that the economic policy of Joe Biden is advantageous to China and harmful to the U.S. It focuses on the Inflation Reduction Act (IRA), which it claims is detrimental to the U.S. economy and beneficial to China, enabling the latter to take advantage of green tax credits and hurting American jobs. The article also accuses the IRA of slashing Medicare for seniors, potentially affecting the U.S. biopharma industry, and highlights a report suggesting the policy could hinder the development of new medicines and lead to job losses.
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Donald Trump’s claim that Joe Biden’s pro-China economic program is detrimental to the US was recently scrutinized. The former president’s statement is, in fact, true; Biden is investing billions in China while sacrificing American jobs.
Biden’s Inflation Reduction Act (IRA), which has done little to curb inflation, is seen as a significant concession to the Chinese Communist Party. As China is establishing military bases near the US, Biden is seemingly inviting the Chinese leader into the driver’s seat.
Sen. Joe Manchin (D-WV) criticized the IRA’s Clean Vehicle Credit, which was supposed to boost American companies by supporting battery and electric vehicle manufacturing. However, Chinese companies have been exploiting these tax credits, taking resources that should benefit American businesses.
The IRA’s funding comes from cuts to Medicare for seniors, slashing $30 billion from the $110 billion program, which will take effect in 2025. The Act’s expansions may also harm the U.S. biopharma industry, further endangering American jobs and healthcare.
The IRA’s language allows the government to impose price controls on prescription drugs for seniors under Medicare. A stringent provision allows for government-controlled price “negotiation” for Medicare drugs, leading to additional costs or scarce pharmaceutical supplies.
These price controls could cause job losses in the biopharma industry, possibly eliminating between 136,000 and 216,000 jobs, with potential indirect layoffs beyond that, according to a report.
Despite America’s technological advancements, China is gradually approaching global domination. As for Trump’s claim, it is indeed correct that Biden’s policies are benefiting China’s economy at the expense of American industry, jobs, and senior citizens’ healthcare. We rate Trump’s claim as true.
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