Conservatives Raise Alarm Over Potential for Hidden ‘Biden Tax’ for Middle Class, Poorer Americans
The Center Square cites Senior Fellow Ryan Young on inflation:
“Yes, inflation is a tax, and yes, an uptick in inflation is likely,” said Ryan Young, an economic expert at the Competitive Enterprise Institute. “The infrastructure bill will add to inflation. But if its $2 trillion or so is spread out over 10 years, it will not add very much to inflation. We’ll know more when the finalized bill drops.”
“…inflation will slow the COVID recovery, and it will be a universal tax that will hurt the poor the most,” he added.
Inflation hits regular Americans hard when prices increase but wages remain steady.
“Interest rates don’t know where they’ll need to go to keep returns at a reasonable level,” Young said. “That causes problems for peoples’ retirement savings, and for small businesses in search of investment capital. Workers won’t see inflation adjustments to their pay for a year or more, which will cause problems for millions of households facing inflating bills.
“The worst part is that all of this is avoidable,” he added.