Four years ago this month, Washington passed a law and named it, with a straight face, the Inflation Reduction Act.
Bizarrely, their plan to ‘reduce inflation’, which had been caused by excessive government spending, was for the government to spend even more money. It’s genius!
Among its various provisions, part of the legislation authorized the government to negotiate prescription drug prices. Seems like a nice idea in principle… but in practice it’s been a disaster.
The Congressional Budget Office released the results late last month: the Medicare drug provisions that were supposed to generate $129 billion in savings will now add $700 billion to the deficit.