Tuesday’s White House event to commemorate the enactment of the expansive Inflation Reduction Act was held under unfavorable circumstances: the stock market was in freefall after it was revealed that consumer prices increased in August.
In remarks to an audience of more than 1,000 people, Biden called the act “one of the most significant laws in our nation’s history, in my judgment,” and the “single most important legislation passed in the Congress to battle inflation.”
Biden proclaimed, “With this measure, the American people won, and special interests lost.”
On the South Lawn, where politicians, activists, and supporters of the government congregated, James Taylor gave a performance before Biden took the podium. In between songs, Taylor referred to it as a “hopeful moment” and urged cooperation in the battle against climate change. However, the festive mood concealed the fact that Biden must still manage a fragile economy that jeopardizes his campaign’s optimistic pitch for the November elections.
According to information made public by the Labor Department on Tuesday, the consumer price index (CPI), a frequently monitored indicator of inflation, increased by 0.1 percent in August after remaining unchanged in July. The continuous drop in gas prices over the course of last month was predicted to result in a 0.1 percent drop in monthly inflation, but the cost of food, power, and other goods continued to rise.
The stock market crashed as a result of the worse than anticipated inflation data. The S&P 500 saw its worst day since June 2020, while the Dow Jones fell more than 1,200 points.
Biden and Democrats have been struggling with inflation for months because it gives Republicans ammunition to criticize them and lowers Biden’s support numbers. But Biden and his party finally felt like they could run on good economic news after the $740 Inflation Reduction Act passed with all Democratic votes and months of declining gas prices. In a time of rising inflation, Biden boasted that “we’re making progress” while praising the drop in petrol prices. “We’re lowering pricing on other items as well.”
In the run-up to the midterm elections, Democrats are already touting the measure as one of their greatest successes. For everything it does, the Inflation Reduction Act is well named, according to Speaker Nancy Pelosi (D-Calif.). Sens. Joe Manchin (D-W.Va.) and Kyrsten Sinema (D-Ariz.), as well as Reps. Pramila Jayapal (Wash.), Ayanna Pressley (Mass. ), and Sean Patrick Maloney (N.Y.), director of the democratic congressional campaign arm, were among the Democratic politicians there.
The inflation statistic highlights how “essential” it is that the White House hold the IRA event on Tuesday, according to White House press secretary Karine Jean-Pierre, who made the comment during a briefing on Tuesday before Biden’s address. The law, she said, is a “major historic achievement” and a victory for consumers.
When asked whether the White House was concerned about a disconnect between the festive atmosphere on the South Lawn and the rising prices that are a concern for many Americans, Jean-Pierre argued the focus should be on how Democrats were able to take on pharmaceutical companies to reduce drug costs and lower energy costs for families.
Because of this, she added, “Democrats and the president must fight hard to reduce expenses in health care, the price of prescription pharmaceuticals, and energy prices as well.”
Republicans on the other hand, opened fire. GOP Chairwoman Ronna McDaniel stated, “Biden and Democrats throwing themselves a party for raising taxes on people amid a recession illustrates exactly how out-of-touch they are.
It is evident that Democrats don’t care about lying to the American people—they just care about power, according to McDaniel—after forcing through the Bidenflation Scam bill on the pretense of lowering inflation. “Voters will be the ones celebrating when Democrats are booted out this November.”
At a smaller ceremony at the White House last month, when Manchin received the first pen from the president, Biden formally signed the legislation. Through the reconciliation process, the law was approved with no Republican support in either body of Congress.
Republicans were criticized for not supporting the bill by Majority Leader Charles Schumer (D-NY), who said that they were more concerned about abortion rights than rising inflation. This statement was met with boos from the spectators. The leader declared, “In a nutshell, that’s the difference between the two parties.”
In addition, despite bipartisan cooperation on other initiatives like the infrastructure law and the CHIPs act, Biden criticized Republicans for not supporting this legislation.
Three new legislators, including Mary Peltola of Alaska, are sworn in by the House.
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Despite being significantly reduced from the original $3.5 trillion package that some had envisioned last fall, the legislation, which has been in the works for more than a year, still represents an unquestionable victory for Biden and Democrats in Congress and fulfills some of Biden’s most important campaign promises.
Because of the law’s several measures encouraging the use of renewable energy, it is anticipated that by 2030, US emissions that contribute to global warming would be lower than they were in 2005. In order to get Manchin’s support, it also includes provisions that favor fossil fuels.
Democrats will triumph against the pharmaceutical industry, which has long opposed such policies, since Medicare would be able to negotiate costs for some medications and support health insurance subsidies.
