Former CBO director rips Democrats’ bill for having ‘zero impact’ on the inflation outlook

FAN Editor

On “Cavuto: Coast to Coast” Tuesday, former Congressional Budget Office Director Douglas Holtz-Eakin ripped Democrats’ Inflation Reduction Act for having “zero impact” on the inflation outlook, and said the White House should be “very concerned” about the state of the U.S. economy.

HOW DEMOCRATS’ INFLATION REDUCTION ACT DELIVERS FIVE WINNING ISSUES TO THE G.O.P.

DOUG HOLTZ-EAKIN: That’s going to have zero impact on the inflation outlook. And by the way, they’ve already spent money that offsets that. They passed the $300 billion deficit finance CHIPS and Science Act. They passed an up to $600 billion increase in veterans benefits in the PACT Act. They have continued to do what Congress does: spend and borrow. And this bill will have zero impact on the inflation outlook.

Sen. Chuck Schumer against Congress, money backdrop

As Democrats anticipate President Biden’s signing of the Inflation Reduction Act, former CBO Director Douglas Holtz-Eakin warns it will have “zero impact” on the inflation outlook on “Cavuto: Coast to Coast” Tuesday, August 16, 2022. (Getty Images)

If I was in the White House, I’d be very concerned. We have labor force participation rate that hasn’t gotten back to the February 2020 level before the pandemic. So there are about 3.5 million workers, fewer than otherwise would be. Productivity growth has been negative for two quarters, and so it’s workers and productivity that deliver increases in output, increases in the standard of living. So I’d be all-in focused on those things that increase long-run supply side growth, and that would be low taxes on the return to saving investment in innovation, incentives to work, a light touch regulatory burden.

And then this administration is doing none of those things. And so I’d be very concerned that even if inflation has peaked and the Fed can conquer it, that what comes out the other side is an economy that’s just not going to deliver for the American people.

WATCH THE FULL INTERVIEW BELOW

Free America Network Articles

Leave a Reply

Next Post

Britain ditches EU trade system, unveils new trade strategy for developing countries

Check out what’s clicking on FoxBusiness.com. Britain has launched a scheme to extend tariff cuts to hundreds of products, such as clothes and food, from developing countries, part of London’s post-Brexit efforts to set up systems to replace those run by the European Union. In June, Prime Minister Boris Johnson […]