Inflation fears broke down along party and generational lines in the poll, with more Republicans and older voters saying that it would make things worse. Prominent Republicans like Gov. Larry Hogan of Maryland have criticized the bill for containing “massive tax hikes” that are especially ill-timed with soaring inflation. Douglas Holtz-Eakin, a former economic adviser to President George W. Bush, said the bill would sustain the “fires of inflation” in a column for The Hill. Other economists don’t think the plan—which spreads out $1.7 trillion of spending various programs over 10 years—would contribute much if anything to the trend of rising prices, though to some extent consumers’ expectations of inflation end up influencing inflation. Even Lawrence Summers, President Bill Clinton’s former Treasury Secretary, who warned about inflationary effects from previous pandemic relief bills, told the Washington Post that this one is different, an opinion echoed by others. “We don’t think that BBB would meaningfully add to current inflationary pressures,” Gregory Daco and Nancy Vanden Houten, economists at Oxford Economics, wrote in a commentary. Unlike previous relief, most of the spending would be spread out over time and offset by tax increases and spending cuts, they wrote. Have a question, comment, or story to share? You can reach Diccon at dhyatt@thebalance.com.
