4 ways House Republicans want to reshape the US economy in 2023

4 ways House Republicans want to reshape the US economy in 2023

The release this week of House Republicans’ “Pledge to America” ​​intentionally echoed its famous predecessor, the 1994 “Contract with America.”

At the time, Newt Gingrich, who would later become the Speaker of the House, stood with other Republicans and outlined his promises on September 27, 1994. While Gingrich’s proposal included a 196-page book outlining 10 bills specific bills, this week’s effort offered vaguer fare, which fits on a single page.

Nonetheless, it is a glimpse of Republican plans if they retake at least one chamber of Congress, as some experts predict. Until now, Republicans have largely focused on potent political issues like immigration, crime and education, but this week’s release also includes hints of economic plans.

“The compromise is a blueprint, a blueprint for a new direction,” House Minority Leader Kevin McCarthy said during a Republican rally Friday with colleagues in Monongahela, Pennsylvania. “It’s about you, it’s not about us.”

House Republicans reveal their commitment to America. Image: YouTube

Here are four key economic takeaways from this week’s presentation, which refer to blaming Democrats for high inflation; increase the production of fossil fuels; Porcelain; and the question of whether Republicans will tamper with the “third rail” of Medicare and Social Security.

inflation, inflation, inflation

Inflation remains the main Republican message.

At the event in Pennsylvania on Friday, McCarthy focused on the US Bailout Plan passed last year as a key driver of inflation. “These Democrat policies have already taken a month off their paychecks,” he said before promising to repeal the recently passed Inflation Reduction Act as soon as Republicans take control.

Republicans have long blamed Washington’s spending for inflation, while most economists point to a broader range of factors behind stubbornly high prices. Still, many experts see last year’s US Bailout Plan, which provided direct aid to Americans, as a key factor in the skyrocketing prices. Meanwhile, the Reducing Inflation Act probably won’t affect prices in any way despite its name, according to a widely cited study from the University of Pennsylvania business school.

In reality, Republicans would have a hard time repealing the Inflation Reduction Act, in large part because Biden would make sure to veto any bill to undo his signature achievement aimed at fighting climate change, reforming health care and shoring up the Internal Revenue Service.

Republicans are also promising new “pro-growth tax and deregulation policies” to fight inflation, with Rep. Patrick McHenry, who would head the House Financial Services Committee, saying “first thing is to stop digging ditches.” “when it comes to fighting inflation. The second priority? Watching the Biden administration.

An upcoming election debate on Medicare and Social Security

Rights deserved only one line in this week’s plan and didn’t come up at all during Friday’s event, but they are likely to take center stage as a key talking point this fall.

House Republicans promised this week to “save and strengthen Social Security and Medicare.” They didn’t provide further details, but the mere mention of the two programs sparks a fight with eager Democrats.

Biden’s party has focused on these rights since Senate Republican campaign chairman Rick Scott released a plan in February that requires Congress to review “all federal legislation,” including Social Security and Medicare, each year. five years. US Republican candidates have also suggested privatizing Medicare.

“The difference with older voters could not be more stark,” Democratic Congressional Campaign Committee Chairman Rep. Sean Patrick Maloney (DN.Y.) said Thursday. “Your choice of him is between one of the parties that says we can take away Social Security and Medicare every five years.”

Biden is also set to highlight the issue again next Tuesday with a trip to Florida, a swing state that is home to many older voters, on the books to deliver a speech on lowering health care costs and strengthening Medicare and Social Security.

US President Joe Biden gives a thumbs up as he boards Air Force One at John F. Kennedy International Airport on September 22, 2022, as he returns to Washington, DC.  (Photo by MANDEL NGAN/AFP) (Photo by MANDEL NGAN/AFP via Getty Images)

President Biden boards Air Force One after a trip to New York on Thursday. (MANDEL NGAN/AFP via Getty Images)

A focus on fossil fuel production

The GOP also signaled a focus on increasing fossil fuel production by 2023 with a promise to “maximize production of reliable American-made energy” and “cut the permitting process time in half to reduce reliance on from foreign countries, avoid rolling blackouts, and reduce the cost of gas and utilities.”

On Friday, House Republican Leader Steve Scalise said he was committed to sending a bill to lower energy prices to Biden’s desk. “We are going to give him that dilemma, we are going to give him that opportunity to wake up,” he promised.

Still, Sen. Joe Manchin (D-WV), a close ally of the energy industry, is pushing his own effort to reform the energy permitting process. While Republicans are generally inclined to support energy reform efforts, many have lined up against Manchin’s proposal along with liberal Democrats ahead of a likely vote next week.

MIDLAND, TEXAS - MARCH 13: Setting up an oil drilling rig in the Permian Basin oil field on March 13, 2022 in Midland, Texas.  US President Joe Biden has imposed a ban on Russian oil, the world's third largest oil producer, which may mean oil producers in the Permian Basin will need to pump more oil to meet demand.  The Permian Basin is the largest oil-producing basin in the United States.  (Photo by Joe Raedle/Getty Images)

An oil drilling rig installation in Midland, Texas, seen earlier this year. (Joe Raedle/Getty Images)

Supply chains and China

Republicans also plan to focus on China next year.

“China has too much control over our supply chain; we are going to bring that back to the United States,” McCarthy said. In an op-ed this week, he added that the GOP plan “modernizes outdated regulations to expand American manufacturing, strengthen our supply chain, and end our dependence on China for critical products.”

Republican leaders have reportedly conducted polls showing that 23% of independents called China their “top problem.” Still, details about a potential bill are scant. Lawmakers have recently launched bipartisan efforts around supply chains, mostly tied to medical supplies, without agreeing on a large-scale bill.

Also on Friday, House Republican leaders promised to hold hearings on the origin of COVID and China’s role in the pandemic if they take control next year and can set the agenda.

House Republican Leader Newt Gingrich opens a ceremony outside the Capitol on September 27, 1994. Some 300 Republican incumbents and challengers signed a binding contract with the American people, containing a 10-point reform program that most Republican would seek to enact in the first 100 days of the 104th Congress.  REUTERS/Ira Schwarz

Then-House Republican Leader Newt Gingrich during a September 27, 1994 ceremony with about 300 Republicans to promote “Deal with America.” (REUTERS/Ira Schwarz)

Ben Werschkul is the Washington correspondent for Yahoo Finance.

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