Biden pins hopes on Inflation Reduction Act to sway voters on economy.
Next week: Celebrating the Anniversary of the Inflation Reduction Act
Get ready to mark the anniversary of a significant milestone in President Joe Biden’s administration. It’s been a year since the Inflation Reduction Act was passed by President Biden and congressional Democrats, including the influential Sen. Joe Manchin (D-WV).
While inflation has cooled down, consumer prices remain stubbornly high. But that hasn’t dampened the enthusiasm of President Biden and the Democrats. They are actively promoting the measure, even before the release of last month’s inflation numbers, as they gear up for next year’s general election.
The Impact of the Inflation Reduction Act
Despite a decrease in the annual inflation rate from 9.1% to 3% compared to last year, the Inflation Reduction Act has not been without its challenges. According to EJ Antoni, a federal budget research fellow at the Heritage Foundation, the act has actually increased prices and exacerbated disinflation, or slower inflation.
“So the idea that the Inflation Reduction Act has been a smashing success because it has consistently brought down inflation, that won’t be the case on Thursday,” Antoni told the Washington Examiner. “The other thing is that inflation is still, if you’re going by June’s number, inflation is still more than twice what it was when Biden took office.”
Antoni, an expert in public finance economics, predicts that last month’s annual inflation rate, to be reported by the Labor Department on Thursday, will likely be above 3%. He points out that inflation has been trending towards 3% rather than the promised 2%. In June, monthly inflation increased to 0.2% from 0.1% in May. Core inflation, which excludes food and energy prices, rose to 0.2% and 4.8% in June, up from 0.4% and 5.3% in May.
“There’s literally no indication that we’re going to be going any lower any time soon,” Antoni added. “I just ran the numbers again this morning, and I cannot make it come out any way other than higher than last month.”
Antoni also highlights the impact of energy prices on inflation. He points out that the deprioritization of domestic production has led to an increase in the average national cost of gas, which now stands at $3.83 per gallon, up from $3.50 just a month ago, according to AAA.
The Republican National Committee has seized on the rising fuel costs, reminding President Biden of his previous desire to take credit when gas prices fell from their peak of $5 last June. RNC spokesman Jake Schneider doubts whether Biden will take responsibility for the current surge in prices, stating, ”Since Biden took office, Americans have lost over $2,250 paying higher energy costs. Biden also drained the U.S. Strategic Petroleum Reserve down to just 18 days of supply — and refilling it will take decades.”
The Economy and Biden’s Reelection Campaign
The state of the economy will play a crucial role in President Biden’s reelection campaign. He and the Democrats have seen a decline in support among non-college-educated voters, including minority non-college-educated voters, partly due to his climate agenda. However, this is a challenge that Biden and the Democrats have faced before. Exit polls from last year’s midterm cycle revealed that the economy was the top concern for voters, along with abortion access, before the party outperformed expectations.
According to RealClearPolitics, President Biden’s overall approval-disapproval rating stands at 42%-55%, with his economic approval-disapproval at 38%-58%. However, his inflation approval-disapproval rating is even lower at 33%-63%. These numbers were reflected in a recent Monmouth University poll, which found that his inflation approval-disapproval rating was 34%-62%, and among independents, it was 26%-71%.
“To the extent Americans may feel more confident financially, they aren’t giving Biden much credit for it,” said Patrick Murray, the director of the Monmouth University Polling Institute. “His economic policy performance numbers have barely budged since last year.”
To highlight the Inflation Reduction Act, President Biden will be visiting the battleground state of Arizona on Tuesday, followed by a trip to New Mexico on Wednesday. The White House states that these visits will allow the president to emphasize his “historic investments in conservation and protecting our natural resources” and promote the act as “the largest investment in climate action in our nation’s history.” Future Forward, Biden’s preferred super PAC, is also running new advertisements about the measure.
Manchin’s Potential Impact
Sen. Joe Manchin could complicate the anniversary of the Inflation Reduction Act. Speculation is growing that he may consider a third-party presidential campaign instead of seeking reelection, potentially going up against Gov. Jim Justice (R-WV).
Manchin has expressed concerns about certain aspects of the Inflation Reduction Act, such as the expansion of electric vehicle tax credits beyond commercial use, as well as President Biden’s broader domestic energy positions. However, he did secure some concessions on permitting reform during last spring’s debt ceiling negotiations. In protest, Manchin has also prevented the confirmation of President Biden’s Environmental Protection Agency nominees.
As the anniversary approaches, all eyes will be on the impact of the Inflation Reduction Act and its implications for President Biden’s reelection campaign.
Click here to read more from the Washington Examiner.
" Conservative News Daily does not always share or support the views and opinions expressed here; they are just those of the writer."
*As an Amazon Associate I earn from qualifying purchases
