Why So-Called Inflation Reduction Act Doesn't Reduce Inflation

The Senate narrowly passed the "Inflation Reduction Act" on Sunday, thanks to a tie-breaking vote from Vice President Kamala Harris. But would the bill, if also passed by the House, actually reduce the record-high inflation faced by Americans?

"The bill drafters will tell you that it reduces deficits, which means it would be less pressure on the Federal Reserve to print money to cover the deficit, which is what they've been doing for the last two years, which is how we got the inflation we had," Heritage Foundation senior policy analyst Richard Stern says. (The Daily Signal is Heritage's multimedia news organization.)

"However, the real truth is, if you go through the bill, it's going to probably increase deficits by $350 billion over the next 10 years, which is a lot of money obviously," Stern says.

The House is preparing to vote this week on the Democrats' tax and spending bill, which likely will be signed into law Friday by President Joe Biden.

Stern joins "The Daily Signal Podcast" to discuss the so-called Inflation Reduction Act, its impact on the average American, and why Stern is hopeful that better policy is on the horizon. 

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