A commentary
By J. F. Kelly, Jr.
“This also is vanity.”
– Ecclesiastes 1, 2; 2, 23
Democrat leaders have been rejoicing over passage of their bill, hilariously named the Inflation Reduction Act. “It’s been a long, tough, winding road, but at last we have arrived”, gushed Senate Majority Leader Chuck Schumer. But exactly where have they arrived and what will this bill really accomplish? Its $433B in spending and $739B in taxes is, thankfully, far less than they originally sought with Build Back Better. It passed the 50-50 Senate without a single Republican vote using the Budget Reconciliation Process with Vice-president Kamala Harris doing what she does best, casting the tie-breaking vote.
The misnamed bill will do little if anything to tame inflation in the near term when it is needed but it will add to federal spending with a recession threatening and will increase taxes on corporations which will undoubtedly be passed on to households in the form of lower wages and smaller stock dividends. Do Democrat leaders really understand that stocks are owned, not only by the affluent, but by millions of ordinary working Americans in retirement plans?
The bill will authorize Medicare to “negotiate” prices on certain prescription drugs. “Negotiate”, in this case, means that the pharmaceutical companies will be forced to agree to price controls which will almost certainly reduce their spending on research and development which produce life-saving medicines. Subsidies for purchasing healthcare insurance through the Affordable Care Act would be extended as would the $7,500 tax credit to buyers of electric vehicles.
Supporters say that the bill’s tax incentives will channel investments in wind and solar systems and battery improvements which would add power to the grid and reduce greenhouse gas emissions, when the wind is blowing and the sun is shining, that is. It may result in minor reductions in emissions in the United States but it will do nothing measurable to reduce global emissions and it is pure vanity for us to imagine that what we do here to reduce emissions will have a significant effect on the rest of the world which will depend upon fossil fuels for decades to come. So long as the developing nations including China, India, Indonesia, most of the rest of Asia, Latin America and all of Africa, containing most of the world’s population, continue to burn fossil fuels, what we do in the United States will have little effect on world climate overall. China, in fact, is increasing its use of coal, notwithstanding its pledge to start reducing emissions in 2030. And neighboring Mexico, the world’s tenth most populous nation, now plans to increase fossil fuel production and consumption as a matter of national economic policy.
What makes us think that the miniscule reductions in emissions that we may achieve here will do anything but make our climate warriors feel good? Will it inspire developing nations to follow our example? Probably not enough to risk freezing in the winter or doing without electricity. What we do here will make precious little difference globally except to signal our virtue. This, again, is vanity. The time and effort would be far better spent on research to develop cleaner methods of using abundant, cheaper carbon-based fuels and promote more use of nuclear power and our large supply of clean natural gas.
What most Americans, at least most Americans I know, want most from government is not more green, feel-good legislation, but rather action to get control of the inflation that is eroding their purchasing power and causing real pain and suffering. 60% of Americans recently surveyed said that their financial situation was getting worse. They also want safe communities, more police presence and a return to proactive policing. They want assurance that their country, still the greatest nation in the world and its largest economy, has sufficient military resources, industrial capacity and infrastructure to adequately defend us against the multiple threats we face. These are the things I hear people worrying about, not climate change that has occurred throughout world history. Most of them seem to realize that the United States, with only 4.3% of the world’s population, can do little about it while most of the world, including China and India, which together account for 35% of the world’s population and most of the emissions, continues to burn fossil fuel including coal.
It is amusing, therefore, to watch Democrat leaders celebrate their recent, modest legislative accomplishments, feeling that they have finally “arrived”, meaning, I guess, that they finally managed to get something– anything– passed in pursuit of their agenda. This, also, is vanity.
August 23, 2022