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

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

This week’s rollout of House Republicans’ “Pledge to America” ​​intentionally echoed its famous predecessor, the 1994 “Contract with America.”

At the time, Newt Gingrich, who would become Speaker of the House, stood with fellow Republicans and presented his pledges on September 27, 1994. While Gingrich’s proposal included a 196-page book outlining 10 plans for specific law, this week’s effort offered more vague fare, fitting onto a single page.

Still, it’s a preview of Republican plans if they take over at least one chamber of Congress, as some pundits predict they will. So far, Republicans have focused heavily on big policy issues like immigration, crime and education, but this week’s rollout also includes hints of economic plans.

“What the pledge is is a blueprint, a blueprint for a new direction,” House Minority Leader Kevin McCarthy said at a Republican rally on Friday alongside his colleagues in Monongahela. , Pennsylvania. “It’s about you, it’s not about us.”

House Republicans reveal their commitment to America. Picture: YouTube

Here are four key economic takeaways from this week’s unveiling, which relate to blaming Democrats for high inflation; increase the production of fossil fuels; China; and whether Republicans will change the “third rail” of Medicare and Social Security.

inflation, inflation, inflation

Inflation remains the main message from the GOP.

At the event in Pennsylvania on Friday, McCarthy focused on the U.S. bailout package passed last year as the main driver of inflation. “These Democratic politicians have already taken a month off your salary,” he said, before promising to repeal the new inflation-cutting law as soon as Republicans take control.

Republicans have long blamed Washington spending for inflation, while most economists point to a wider range of factors behind stubbornly high prices. Still, many experts see last year’s U.S. bailout — which provided direct relief to Americans — as a key factor in the price spike. Meanwhile, the Inflation Reduction Act is unlikely to affect prices despite its name, according to a widely cited study by the University of Pennsylvania School of Business.

In reality, Republicans would have a hard time repealing the Cut Inflation Act, largely because Biden would be sure to veto any bill to undo his landmark achievement that aims to fight change. climate change, health care reform and strengthening the Internal Revenue Service.

Republicans are also promising new “growth-friendly tax and deregulation policies” to fight inflation. fight against inflation. The second priority? Keeping tabs on the Biden administration.

An Upcoming Election Debate on Medicare and Social Security

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

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

Biden’s party has been focused on those rights since Senate Republican campaign chairman Rick Scott released a plan in February requiring Congress to review “all federal legislation” — including Social Security and health care. health insurance – every five years. GOP candidates in the United States have also suggested privatizing Medicare.

“The difference with older voters couldn’t be clearer,” Democratic Congressional Campaign Committee Chairman Rep. Sean Patrick Maloney (DN.Y.) said Thursday. “You have a choice of a side that says we can cut your Social Security and Medicare every five years.”

Biden is also expected to highlight the issue again next Tuesday with a trip to Florida — a key state home to many older voters — in the books to deliver a speech on cutting health care costs and bolstering insurance. -sickness 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 the production of fossil fuels

The GOP also signaled a focus on increasing fossil fuel generation in 2023 with a promise to “maximize reliable American-made power generation” and “cut permitting process time in half.” to reduce dependence on foreign countries, avoid power outages and reduce the cost of gas and utilities.

On Friday, House Republican Whip Steve Scalise said he had pledged to send a bill to reduce energy prices to Biden’s office. “We’re going to give him this dilemma, we’re going to give him this opportunity to wake up,” he promised.

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

MIDLAND, TEXAS - MARCH 13: An oil drilling rig installation in the Permian Basin oilfield 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 could mean Permian Basin oil producers will have to pump in more oil to meet demand.  The Permian Basin is the largest petroleum basin in the United States.  (Photo by Joe Raedle/Getty Images)

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

Supply chains and China

The Republicans also plan to move into China next year.

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

Republican leaders reportedly conducted polls showing that 23% of independents called China the “biggest problem”. Still, details about a possible bill are scarce. Lawmakers recently launched bipartisan efforts around supply chains — mostly related to medical supplies — without yet agreeing on a full-scale bill.

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

Republican House Leader Newt Gingrich opens a ceremony in front of Capitol Hill September 27, 1994. Some 300 Republican incumbents and challengers signed a binding contract with the American people that contains a 10-point reform agenda that a majority Republican would seek to pass within the first 100 days of the 104th Congress.  REUTERS/Ira Schwarz

Then-Republican leader Newt Gingrich at a September 27, 1994 ceremony with about 300 Republicans to tout the “Deal with America.” (REUTERS/Ira Schwarz)

Ben Werschkul is a Washington correspondent for Yahoo Finance.

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