alleging her teenager got hooked to their products at the age of 12. in mid august, us presidentjoe biden signed the inflation reduction act into law. the $700 billion bill aims to fight climate change and healthcare costs while raising taxes mainly on the rich. the final version is more modest in scope compared to the $3.5 trillion dollar package first envisaged by democrats. a flagship of mr biden s agenda, the bill could provide a boost ahead of the mid term elections. joining me now is scott sumner who s the chair of monetary policy at george mason university. this is hailed as major significant piece of legislation and coming at a great cost of $700 billion but now the dust has settled on the bill what will the impact look like?
trillion dollars over ten years, it includes a bunch of revisions on the climate and medicare, and childcare, but it leaves out some of the most popular proposals that democrats have been championing for years. before we do all that, it is probably important to take a step back exempt ourselves from the relentless presentism of the new cycle, and this is how we got to this point, where the democrats have slashed this proposed 3.5 trillion dollar agenda and a half. but also where they are considering spending 1.7 five trillion dollars on social welfare and climate change programs. think back to 11 months ago joe biden was elected president, it took about two weeks to count votes, we didn t know that it was gonna happen. we knew that democrats were likely to lose how seats, it looked touch and go. it also look like mitch mcconnell was going to remain the senate majority leader, it
moment one that i actually hit upon, and that s this major issue of trust, there were lots of lawmakers, who like to abide and had to say. they agreed with the framework. even though some of their priorities are reflected, i just got off the phone with who is pained over family leave not being included in the framework that she saw so far. but conceded that if the bill was held tonight, she would ve voted yes. and she still supported the framework. she wants to support president biden s agenda. but then there is this issue of members referring back to, one vargas saying he liked with the president had to say, but he still didn t trust joe manchin and kyrsten sinema to support. this even though they were the two lawmakers that were requesting the 3.5 trillion dollar package, to get shaved down to 1.7 trillion. and both of those senators today, sort of odd loosely and
the media likes to take advantage of these very large numbers and give us some sticker shock, and make it all sound really unaffordable, and somewhat were really talking about with the democrats but, they started off talking about, with his 3.5 trillion dollar reconciliation bill. and they have a framework, they had a framework for this. one of the amounts to, we use terms like three and a half trillion dollars, but that s the ten-year price tag. and it s a weird sort of thing to do, but it s budget speak. everything is sort of costed in ten-year terms. when it amounts to, ali, as you know, this is about 350 billion dollars per year over the course of the next decade. it s about 5% more than the government would already be on track to spend. so if we as individuals decided not to think about our monthly or annual budgets for food or for clothing, or a housing, or heating, and we thought about in ten years harms, we d all be quite shocked, actually, about what
senator sanders tweeted, the majority of the american people support the 3.5 trillion dollar reconciliation bill. 48 out of the 50 democrats in the senate support the bill 96% of democrats in the house support the bill. no two people cannot sabotage what the overwhelming majority of this country want. now, it is rare for individual senators to be publicly isolated from their party the way joe manchin has been. and it is reminiscent of the first time a senator switched parties, at a time when each party had 50 senators, jim jeff hurts switch to the democratic party. after years of whispered encouragement from his democratic neighbors, like new york s and, the moment, the instant senator jeff hurts which party, control of the senate switch. from republicans to democrats. there s never been a more dramatic moment in the senate.