Great Lakes Wire

The U.S. Senate recently approved the $430 billion Inflation Reduction Act of 2022, despite the ongoing concerns by economists who have tied federal government spending to record inflation.

The bill was spearheaded by the U.S. Sen. Joe Manchin, D-W.Va., and U.S. Sen. Chuck Schumer, D-N.Y., and calls for new spending on energy, electric vehicle credits and health insurance. The bill passed 51-50 along party lines and raises the minimum taxes for large companies and enforces existing tax laws, according to United States Senate.

"The so-called Inflation Reduction Act that we are debating this evening, and I say so-called by the way, because according to the CBO and other economic organizations that have studied this bill, it will, in fact, have a minimal impact on inflation," Sen. Bernie Sanders, I-Vt., who voted for his party's bill, said on the Senate floor Saturday.

Economists have said the rising inflation in the country is related to the recent federal government spending, according to SmartAsset.

Despite these reports, U.S. Sen. Gary Peters, D-Mich., and U.S. Sen. Debbie Stabenow, D-Mich., backed the bill, according to the United States Senate.

“Thanks to the Inflation Reduction Act we passed in the Senate, we will lower costs for families including for prescription drugs,” Peters said on his website.  “I’m proud that this legislation also makes historic investments to combat climate change, while incentivizing clean energy production,  American manufacturing and job creation — and at the same time lowers the deficit.”

However, their Republican counterparts aren't overly enthusiastic that the act will have the impact that is being presented to the public. 

U.S. Sen. Lindsey Graham, R-S.C., said the bill is not going to bring down inflation and will actually worsen the recession, adding that the Democrats’ attempts to paint the bill as deficit-reducing is a "gimmick."

"It says it would reduce the deficit by $100 billion -- we're going to spend almost a trillion dollars," the senator told Fox News.

If there is cause for concern, it could be that inflation is a byproduct tied to the federal government’s COVID-19 pandemic relief measures, according to Paige Terryberry, senior analyst for fiscal policy at the John Locke Foundation.

“We are experiencing high, simulated demand propped up by trillions of newly created dollars. Supply is struggling to keep up,” she said on the John Lock Foundation website.