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On the occasion of the first anniversary of the Inflation Reduction Act (IRA)-a legislative attempt to combat the climate crisis, President Joe Biden hailed the bill, saying the legislation already created 170,000 clean energy jobs and will create some 1.5 million jobs over the next decade.
The president added that the legislation has shifted the production of critical components away from China and into the United States.
“We are building here and sending over there,” Biden said.
During the celebration at the White House, the president stood alongside people — from union workers to small business owners to consumers — who the White House says have been aided by the law.
“It fell entirely to Democrats to deliver it,” said Biden, assailing Republicans he said were now seeking credit for the law’s achievements despite voting uniformly against it. “I hope we’ve seen with all the people out there claiming their credit for it, they’ve all decided they’re going to join the fight.”
The event was an effort to gain politically from the law, which helped Biden rescue his agenda ahead of last year’s midterm elections.
IRA’s IMPACT
According to a Bank of America analyst report, the real impact of the IRA will begin in 2024 and 2025. Since its passage, more than 270 new clean energy projects have been announced with investments totaling some $132 billion.
Roughly half of those investment dollars are going to electric vehicles and batteries, while the rest are going to renewable energy like solar, wind, and nuclear. These investments are expected to be accompanied by over 86,000 jobs, including 50,000 jobs related to EVs, the analyst said.
And, credit rating agency Moody’s aid the legislation is likely supporting growth in gross domestic product, productivity, and innovation.
IRA’s IMPACT ON INFLATION, US ECONOMY
the Inflation Reduction Act helped solve a political problem for Democrats who were concerned that voters would punish them for soaring prices in the 2022 congressional elections.
While price increases have cooled significantly over the past year — the inflation rate has dropped to 3.2% from 9% — most economists said little to none of the drop came from the law.
However, Reuters report said that most Americans who voted for Biden in 2020 said they believe the economy has fared poorly under his stewardship.
About half of the respondents who voted for Biden in 2020 said they have heard little or nothing of his major policy initiatives to reduce inflation or boost spending on infrastructure.
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Updated: 17 Aug 2023, 07:31 AM IST
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