[Above, Robert Reich calls out Manchin and other inflation scolds over Build Back Better. — eds.]
Reuters is reporting that leading rating agencies said the Build Back Better plan will not add to inflationary pressures in the U.S. economy.
The two pieces of legislation “should not have any real material impact on inflation”, William Foster, vice president and senior credit officer (Sovereign Risk) at Moody’s Investors Service, told Reuters.
The impact of the spending packages on the fiscal deficit will be rather small because they will be spread over a relatively long time horizon, Foster added.
This is a blow to Senator Manchin and other inflation scolds, including those in the beltway media, that only care about government spending when Democrats control legislation.
And the deficit scolds conveniently forget that we are still in the midst of a global pandemic.
Nations are still trying to recover and get past COVID19, which has caused massive supply chain and energy issues all over the world, leading to an unsurprising rise in inflation.
Any spending that helps 98% of the American public is always railed against by Republicans because it destroys their narrative that only free markets work. Too bad they are aided by the mainstream media as well.
Biden’s agenda isn’t a short-term fix as Charles Seville, senior director at Fitch Ratings says.
The “spending legislation could increase labor supply through provisions such as childcare, and productivity…”
It’s sad that to get progressive bills passed through a Democratic congress, a Democratic president is forced to kowtow to the rating agencies by a few conservative members aided by the press, when so many lives could be helped.
The Build Back Better agenda will help average Americans, period. The screaming MAGA jerks on Fox News fearmonger over these packages, comparing them with, you know, Venezuela, because they know these bills are incredibly popular with the public.