What is the "Inflation Reduction Act"?
SmartHERNews
Jenna Lee
4.9 • 660 Ratings
🗓️ 8 August 2022
⏱️ 11 minutes
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Summary
And will it actually reduce inflation? A few items to consider as we await the final analysis of the bill, that we expect to see on the President's desk this week.
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Transcript
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| 0:00.0 | Hey guys, hope you're after a great start to your week. I have been receiving a lot of questions |
| 0:09.6 | about this Inflation Reduction Act that passed the Senate. And I just wanted to jump on real quick |
| 0:14.0 | because we're actually working through our coverage of this bill that passed through the Senate |
| 0:17.7 | this weekend, has a really catchy title, a lot of questions around it. And as I was looking at some of the coverage, I thought, you know, there's actually a lot to learn from here. And I just wanted to talk to you a little bit about what you're seeing and some of the questions that maybe we can be asking as well. So just to start off, let's just take a deep breath and pull way back from politics for a second. |
| 0:38.9 | We'll add the politics back in, but let's just take a step back from politics and talk a little |
| 0:42.2 | bit about inflation. We know that inflation matters because the higher the inflation, the less |
| 0:47.2 | our dollar buys us, which is something that we don't want. We want our dollar to buy us just the |
| 0:51.3 | right amount. We don't want it to buy it, buy us less, which is when |
| 0:55.3 | you're in a high inflationary period. It does. Now, we expect to have some inflation in the |
| 1:00.9 | economy. Most economists say around 2%. I expect to pay more for a gallon of milk than my mom paid |
| 1:06.6 | for a gallon of milk because the economy has evolved. America has become a bigger economy. |
| 1:16.1 | We've grown. So we do expect to see prices go up somewhat, but we don't want to see them in this sort of environment that we're in. And right now, our inflation reading shows inflation, |
| 1:22.5 | you know, four times that. So we're really in a high inflationary period. So one of the things to know about |
| 1:29.7 | inflation, though, is that there's debates at the very highest level about what causes inflation. Yeah, |
| 1:35.1 | we know a lot of different variables that could cause inflation. We know supply chain disruptions, |
| 1:38.9 | for example, and high demand can cause inflation. But there's a lot of different things that cause |
| 1:43.7 | inflation. And one of the things of different things that cause inflation. |
| 1:44.7 | And one of the things I don't think we talk about enough on the news is that even at the |
| 1:48.8 | smartest of the smart people that know all about economic theory can debate about what causes |
| 1:55.0 | inflation and what causes it to stay around. We're also in an economy that's constantly moving |
| 2:00.1 | and evolving. You know, we're all in our |
| 2:02.2 | little constellations, our little communities, and we're participating in the economy as part of a |
... |
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