The Inflation Reduction Act, Analyzed

What the Inflation Reduction Act Would Do

The new reconciliation agreement is a big deal.

Announced yesterday by Senate Democrats, the Inflation Reduction Act would make historic investments and structural interventions to stem rising prices—strengthening the supply of clean energy, curbing drug prices, and taxing those with the most ability to pay.

“This agreement shows the emergence of a new common sense: Public investment can reduce carbon emissions, drive economic growth, and make essential goods more affordable for Americans,” said Roosevelt President and CEO Felicia Wong.

“It addresses short-term price increases, especially on prescription drugs, by using the power of federal negotiation to curb the market power of pharmaceutical companies. And it makes long-term investments in the industries of the future, especially clean energy.” 

Read Roosevelt’s statement on the Inflation Reduction Act.

Stiglitz on the Inflation Reduction Act

“The compromise agreed to under the rubric of the Inflation Reduction Act of 2022 is far more than just an act addressing inflation—although it does that in several ways,” Roosevelt Chief Economist Joseph Stiglitz explains.

“It simultaneously addresses several key and long-standing problems facing our economy and society.”

Read more of Stiglitz’s analysis.

What We’re Reading

Fighting Climate Change through Trade [authored by Roosevelt’s Joseph Stiglitz, Todd N. Tucker, and Isabel Estevez] – Foreign Affairs

What GDP Does and Doesn’t Tell Us [feat. Stiglitz] – Vox

Jerome Powell’s Fed Pursues a Painful and Ineffective Inflation Cure – Wall Street Journal

Need Some Good News? Look to the Unions. – Washington Post