Inflation Reduction Act passes!!!

[curmudgeon]

Great news! Joe Biden is the greatest! A combination of FDR, Eisenhower and JFK! This will help all Americans! Unity!……..

[Aseahawkfan]

Do you have an article link?

I heard they plan to add a 1% tax to stock buybacks. That sucks. That was one of the most cost effective methods for managing stock ownership.

And they kept the carried interest provision allowing hedge fund managers to pay less in tax because their income can be classified as capital gains.

I guess we'll see how well this is viewed by the public.

[curmudgeon]

https://www.cbsnews.com/
My bad. It’s a climate, health and tax bill. Thank God for the Democrats! They really know best…..

[RiverDog]

https://www.cbsnews.com/
My bad. It’s a climate, health and tax bill. Thank God for the Democrats! They really know best…..

No, you got it right in the first place. They're calling it the "Inflation Reduction Act", but it's anything but.

Although there are some things in it that I like, such as empowering Medicare to negotiate prices with drug companies (I thought that they already did), the spending in it will do nothing to halt inflation and in fact, may actually increase it.

Inflation may well come down as gas prices have been falling rapidly for a month and that alone should at least reduce the upward pressure on prices, but it won't be due to this legislation. All Democrats know how to do is spend.

[Aseahawkfan]

No, you got it right in the first place. They're calling it the "Inflation Reduction Act", but it's anything but.

Although there are some things in it that I like, such as empowering Medicare to negotiate prices with drug companies (I thought that they already did), the spending in it will do nothing to halt inflation and in fact, may actually increase it.

Inflation may well come down as gas prices have been falling rapidly for a month and that alone should at least reduce the upward pressure on prices, but it won't be due to this legislation. All Democrats know how to do is spend.

I'm surprised myself. I can't help but think that is false reporting. I've read Medicare like other insurance companies negotiates bulk prices on medications. I'm not sure what this changes. I don't believe at all there was no negotiation as I know for certain Medicare only pays limited amounts for approved drugs and other medical procedures. So not even sure what they mean with this change unless they plan to finally open up buying cheap drugs from Canada.

I think inflation should drop quite a bit in this next reading. Probably to the 5 or 6% range.

[RiverDog]

I'm surprised myself. I can't help but think that is false reporting. I've read Medicare like other insurance companies negotiates bulk prices on medications. I'm not sure what this changes. I don't believe at all there was no negotiation as I know for certain Medicare only pays limited amounts for approved drugs and other medical procedures. So not even sure what they mean with this change unless they plan to finally open up buying cheap drugs from Canada.

The more I think about it, the more it's apparent to me that Medicare doesn't do very much price negotiations with drug companies. They approve drugs for coverage under Medicare, but they don't negotiate contracts.

Medicare's prescription drug plan is called Part D (not for 'Drugs', but because it follows A,B, and C). It is extremely complicated as it involves dozens of different private insurance companies that all negotiate different contracts with various suppliers. Their premiums can vary, from as little as $7/month to over $30/month. They have a matrix where you enter your prescription drugs that produces your best value drug insurance company. My wife has 11 prescription drugs. Make just one change, if your doctor wants you to try a certain drug, for example, it can change the matrix dramatically. Then they have what's known as the 'donut hole', a gap in coverage after your expenses pass the initial coverage limit and before you enter the catastrophic category.

There can be a huge difference in the price of a drug from pharmacy to pharmacy. My wife once had a drug that Walmart was selling for over $100. Costco had the same drug for less than $10. It all depends on when and what terms different pharmacies negotiate their contracts, so it pays to shop around. The problem is that people that live in remote areas don't have a couple dozen pharmacies to choose from.

I haven't taken a look at the details of this bill, if it can help level out the 'wow's such as I mentioned above while not taking away financial incentives for drug manufacturers, but I think it's possible if it's managed right.

I think inflation should drop quite a bit in this next reading. Probably to the 5 or 6% range.

I don't think it's going to drop that fast. Many companies don't lower prices until their current inventory is used up as they've already sunk funds into it that they have to reclaim. My former company negotiates contracts on an annual basis with both their raw suppliers and with their large customers.

For example, McDonald's and Burger King won't get cheaper ground beef if their contract expires in March of 2023. But they might get cheaper soft drinks if that contract expires next month. Inflation is likely going to drop some, or at least not go up as fast as it has in past months, but you're not going to see it drop off a cliff.

[Aseahawkfan]

The more I think about it, the more it's apparent to me that Medicare doesn't do very much price negotiations with drug companies. They approve drugs for coverage under Medicare, but they don't negotiate contracts.

Medicare's prescription drug plan is called Part D (not for 'Drugs', but because it follows A,B, and C). It is extremely complicated as it involves dozens of different private insurance companies that all negotiate different contracts with various suppliers. Their premiums can vary, from as little as $7/month to over $30/month. They have a matrix where you enter your prescription drugs that produces your best value drug insurance company. My wife has 11 prescription drugs. Make just one change, if your doctor wants you to try a certain drug, for example, it can change the matrix dramatically. Then they have what's known as the 'donut hole', a gap in coverage after your expenses pass the initial coverage limit and before you enter the catastrophic category.

There can be a huge difference in the price of a drug from pharmacy to pharmacy. My wife once had a drug that Walmart was selling for over $100. Costco had the same drug for less than $10. It all depends on when and what terms different pharmacies negotiate their contracts, so it pays to shop around. The problem is that people that live in remote areas don't have a couple dozen pharmacies to choose from.

I haven't taken a look at the details of this bill, if it can help level out the 'wow's such as I mentioned above while not taking away financial incentives for drug manufacturers, but I think it's possible if it's managed right.

Hmm. You would know that better than I do. I am not on Medicare yet. I'm not sure how that all works. It seems real strange they don't negotiate drug prices given the volume they must buy drugs and the like in. Sounds downright stupid management.

I don't think it's going to drop that fast. Many companies don't lower prices until their current inventory is used up as they've already sunk funds into it that they have to reclaim. My former company negotiates contracts on an annual basis with both their raw suppliers and with their large customers.

For example, McDonald's and Burger King won't get cheaper ground beef if their contract expires in March of 2023. But they might get cheaper soft drinks if that contract expires next month. Inflation is likely going to drop some, or at least not go up as fast as it has in past months, but you're not going to see it drop off a cliff.

5 to 6% isn't low. But inflation is massively affected by oil prices and oil prices have dropped substantially since the last reading. Should help, but won't necessarily drop it close to The Fed's goal of 2%.

[RiverDog]

Hmm. You would know that better than I do. I am not on Medicare yet. I'm not sure how that all works. It seems real strange they don't negotiate drug prices given the volume they must buy drugs and the like in. Sounds downright stupid management.

My only advice is to educate yourself. When you get within 10 years of the rocking chair, start going to SS and Medicare classes. They're free, and although you'll have to listen to a sales pitch somewhere along the way, they have a lot of good information. So many people make the assumption that the government will take care of them and don't bother doing some homework. The government instructs their agents NOT to make any recommendations, only answer questions. Pay attention to what Congress is doing. They made a change to SS once that completely altered my retirement plans about 3 years before I retired.

I don't think it's going to drop that fast. Many companies don't lower prices until their current inventory is used up as they've already sunk funds into it that they have to reclaim. My former company negotiates contracts on an annual basis with both their raw suppliers and with their large customers.

For example, McDonald's and Burger King won't get cheaper ground beef if their contract expires in March of 2023. But they might get cheaper soft drinks if that contract expires next month. Inflation is likely going to drop some, or at least not go up as fast as it has in past months, but you're not going to see it drop off a cliff.

5 to 6% isn't low. But inflation is massively affected by oil prices and oil prices have dropped substantially since the last reading. Should help, but won't necessarily drop it close to The Fed's goal of 2%.

The Fed is planning on incremental increases in the prime lending rate once every 6 weeks through the first quarter of 2023. That alone tells us that significant inflation is going to be around for a while.

You're right, the price of oil is perhaps the largest single driver of inflation, and it's coming down is a good sign. But it's not happening overnight. We're going to have to deal with significant inflation above the rate at which wages are rising for at least another 6 months.

[Aseahawkfan]

The Fed is planning on incremental increases in the prime lending rate once every 6 weeks through the first quarter of 2023. That alone tells us that significant inflation is going to be around for a while.

You're right, the price of oil is perhaps the largest single driver of inflation, and it's coming down is a good sign. But it's not happening overnight. We're going to have to deal with significant inflation above the rate at which wages are rising for at least another 6 months.

I'm expecting 5 to 6% for a while. Some of the things to look at is a bad winter in Europe will drive up natural gas prices. Food prices might continue to rise if the fertilizer situation with Russia and Ukraine gone doesn't get worked out. Of course, the labor market and rising wages will always get passed on to us as much as companies can do it. Democrats don't seem to accept this with Joe writing letters about companies profiting too much, which never works. Companies pass on all costs to consumers whether a minimum wage, increased taxes, inflation, increased wages, and the like. It's absolutely normal for business operations. If the government wants this change, they should make moves to increase supply, especially in housing and energy.

[I-5]

Since I don't live in the US now, I haven't been following all the legislative news...but I'm defintely hearing less 'Sleepy Joe' and 'Let's Go Brandon'. Sleepy Joe seems like he's been pretty busy despite getting covid-19 twice.

[Aseahawkfan]

Since I don't live in the US now, I haven't been following all the legislative news...but I'm defintely hearing less 'Sleepy Joe' and 'Let's Go Brandon'. Sleepy Joe seems like he's been pretty busy despite getting covid-19 twice.

You're in Canada? I thought that was Northawk. Maybe he is in Canada too.

As far as I know Biden's poll numbers haven't changed much. This Inflation Reduction Act isn't particularly viewed as much by either side. It's as usual too much to Republicans and not enough for the Democrats.

They are currently looking at alternative candidates on the Democratic side for Joe Biden because some in the Democratic Party are not confident in voting for him.

A lot will be decided in the midterms. Roe vs. Wade ruling was a big help to the Dems who were heading for problems. A lot of people are more interested in State elections now since the States states decide abortion law now. So people have to be more selective in who they choose at the state level.

I don't care that much myself. All I care about at the moment is Trump being done. The rest of it is just a bunch of garbage by two political parties that aren't doing much to make this country very enjoyable to live in.

[I-5]

You're in Canada? I thought that was Northawk. Maybe he is in Canada too.

As far as I know Biden's poll numbers haven't changed much. This Inflation Reduction Act isn't particularly viewed as much by either side. It's as usual too much to Republicans and not enough for the Democrats.

They are currently looking at alternative candidates on the Democratic side for Joe Biden because some in the Democratic Party are not confident in voting for him.

A lot will be decided in the midterms. Roe vs. Wade ruling was a big help to the Dems who were heading for problems. A lot of people are more interested in State elections now since the States states decide abortion law now. So people have to be more selective in who they choose at the state level.

I don't care that much myself. All I care about at the moment is Trump being done. The rest of it is just a bunch of garbage by two political parties that aren't doing much to make this country very enjoyable to live in.

Yup, Canada. Vancouver to be exact. Makes sense that Northhawk might be in Canada, too. I swear every time I visit my family in Seattle, the streets keep changing. I grew up in Seattle but now I need a GPS to navigate some of the new streets.

[Aseahawkfan]

Yup, Canada. Vancouver to be exact. Makes sense that Northhawk might be in Canada, too. I swear every time I visit my family in Seattle, the streets keep changing. I grew up in Seattle but now I need a GPS to navigate some of the new streets.

There is a lot of construction here. One thing I am looking forward to surprisingly is the light rail going to where I live. I didn't think about using public transportation until I started working in the city. Cities get so crowded and so many protest, parades, events, construction, and other activities going on that jam up traffic. Makes it easier to just park at a park and ride, then hop the light rail into the city.

Just wish they would clean up all these homeless drug addicts that haunt the streets and camp outside every store or place. It gets annoying to deal with. I get off at night, so I have to watch my back when moving around the city. Didn't used to have do that working in The Burbs and such though it seems to be seeping from Seattle North to at least Everett.

I don't know where all this heroin and opiates came from. Pot I don't care about. But these heroin and opiate zombies are terrible to be around and see.

Hopefully Canada handles that better than we do or doesn't have as many heroin and opiate zombies around. Not sure how the Pacific Northwest became the drug haven it is, but damn we gotta a lot of drug users here.

[RiverDog]

I just saw a graphic showing that the average price of gas is currently $3.99 (it's higher here as WA has one of the highest gas taxes in the nation) and at this time last year, the price was $3.19. Plus it's bound to keep coming down for awhile as the vacation season comes to an end and demand drops in the fall.

So, the Dems prospects for the midterms might well improve as Wall St. will react positively, and inflation should subside somewhat. Thank God for Sleepy Joe's strongly worded letter to the Big Oil CEO's.

[Hawktawk]

I trust Joe Manchin . Besides elections have consequences . Dems believe in climate changes and taking care of the less fortunate among many whacked fringe ideas . Chump lost and his evil traitorous acts after losing cost republicans the senate . It’s 100% his fault what is happening now . Besides I watched him engage in 1.3 trillion annual deficit spending for 3 years before the pandemic then dump trillions in fed funds into the suddenly too big to fail market to create that bubble as many ma and pa corner restaurants went bankrupt . I’m sure none of that contributed to inflation . The trump party sucked. No better then democrats Unless you’re wealthy . Truth is in the middle but nobody is in the middle .

[RiverDog]

I trust Joe Manchin . Besides elections have consequences . Dems believe in climate changes and taking care of the less fortunate among many whacked fringe ideas . Chump lost and his evil traitorous acts after losing cost republicans the senate . It’s 100% his fault what is happening now . Besides I watched him engage in 1.3 trillion annual deficit spending for 3 years before the pandemic then dump trillions in fed funds into the suddenly too big to fail market to create that bubble as many ma and pa corner restaurants went bankrupt . I’m sure none of that contributed to inflation . The trump party sucked. No better then democrats Unless you’re wealthy . Truth is in the middle but nobody is in the middle .

I like Joe Manchin, too, but he's too old to be considered a viable candidate for POTUS. He'll be 75 here in a couple weeks. You're right, there is no candidate from either party that is 'in the middle". Our choices have been horrible.

I believe in climate change, too, but I don't believe in the approach the Dems are using to address it, at least not in this neck of the woods. They've wrapped their arms around wind and solar and insist on breaching the LSRD's without a viable means to replace the electrical generating capacity we'd be losing while not recognizing the role they play in transportation and agriculture.

While I wouldn't give DJT 100% of the blame for "what's happening now", IMO he is the largest single factor and bears the lion's share of the responsibility.

[Hawktawk]

Does anyone think 2 Dems win in Georgia in a run off on Jan 5 if Trump wasn’t tearing apart Republican state officials ? It’s his fault 100%

[Aseahawkfan]

Inflation didn't drop as much as I thought. Still 8.5% which is way too high. More interest rate increases incoming.

[Aseahawkfan]

I like Joe Manchin, too, but he's too old to be considered a viable candidate for POTUS. He'll be 75 here in a couple weeks. You're right, there is no candidate from either party that is 'in the middle". Our choices have been horrible.

I believe in climate change, too, but I don't believe in the approach the Dems are using to address it, at least not in this neck of the woods. They've wrapped their arms around wind and solar and insist on breaching the LSRD's without a viable means to replace the electrical generating capacity we'd be losing while not recognizing the role they play in transportation and agriculture.

While I wouldn't give DJT 100% of the blame for "what's happening now", IMO he is the largest single factor and bears the lion's share of the responsibility.

I don't know why it is a question of belief in climate change so much as the extremist viewpoint towards it and all that gets lumped into it. The way climate change is marketed is straight up fear politics with a lot of alternate agendas getting lumped into climate change with minimal to no evidence to support inclusion. So many people are piling into climate change that it is making the science of climate change look idiotic like when they try to attribute racism to causing climate change or meat consumption so the vegan lifestyle now seems like the only way to battle climate change. The lies the left pushes are many and as crazy as the right, but not many people even know what their chosen party is pushing or doing or they just buy into it whether or not it is true or they even understand the underlying science of it.

The so called educated left is just as ignorant. Right now I've listened to multiple Democrat or what would be referred to as liberals claiming inflation is occurring just because a bunch of CEOs are raising prices just because. They literally have no understanding of market operations or the maintenance of margins as part of the goal of business operations. They don't know what input costs are and don't think businesses are affected by high gas prices or increased input costs which cause them to pass on costs to consumers to maintain margins which are calculated so the business can remain competitive and solvent. It's all just a bunch of a greedy capitalists and 1%ers raising prices just because they're so greedy and evil. It's fricking ridiculous.

I've attempted to discuss climate change with people. I've never seen so many people who believe in something they don't understand other than the religious. They literally just understand cars, exhaust, and carbon emissions in air bad. They don't understand a combustion reaction, the waste product of combustion or other carbon gas reactions, the idea that such temperature increases are going to be limited in the long-term as the capacity of the environment to absorb carbon gases is limited and thus will cap at some point, and we don't know what that point is, as well as some of the measures taken to reduce carbon emissions. It's such a hard thing to discuss complex, multifactorial problems with folks that don't have the capacity to understand them.

It is why I understand why politicians lie or at the very least dumb down information, even why I don't at all like it. It is necessary for human population management because there is no way the vast majority would figure this information out on their own.