Politics, energy: the Inflation Reduction Act, 2022

Self-tutoring about US politics: the tutor begins about the Inflation Reduction Act.

The Inflation Reduction Act of 2022, to me, seemed rather difficult to connect with the goal of reducing inflation. In fact, it was perhaps much more interesting.

The Inflation Reduction Act of 2022 included incentives for investment in green energy capability and supply chains within America. Some people saw it as the opposite of globalization, as it aimed to stage production specifically within the United States rather than let the market decide its optimal location.

John Podesta would go on to oversee the results of the Inflation Reduction Act’s green energy investment program. Interestingly, he opined that said investment towards green energy, in the US, would bring down the costs of converting to green energy worldwide. The concept seems to be that the new green technologies being established in the US could then be imported by other countries.

From that point of view, perhaps the Inflation Reduction Act of 2022 incorporated the kind of leadership governments often wish for from the US.

Interesting, eh?

Source:

energy.gov

Financial Times [YouTube]