The Republicans, adamantly against the law, tabled amendments against the overall investment plan all weekend. In the event of a vote, they often proved to have no chance, but were able to delay the process considerably. “They are robbers,” Mitch McConnell, the leader of the Republicans in the Senate, said of the Democrats on Saturday. They want to pay for climate measures by taxing companies and the very rich. But according to Republicans, the average American family will be the victims. “Now they want to rob American families a second time.” The first would be high inflation, which they blame on the Democrats.
The lion’s share of the investment is for the climate, but the package also includes parts that are intended to lower the price of medicine for Americans. In that regard, the Republicans managed to achieve a modest success with such an amendment on Sunday: a cap on the cost of insulin, as the Democrats would like it to be, will not come.
Over the years, several politicians have made attempts to make major climate investments, but they have always failed. While a solution became more urgent by the day. Last month, more than 90 heat records were broken across America, often resulting in deaths. Moreover, doing nothing turns out to be expensive. Extreme weather cost the government $120 billion last year. Without measures, that could rise to $ 2,000 billion by the year 2100, according to research by the US government.
This time, the Democrats did get enough support for a climate investment, the largest in history. “Passing the Inflation Reduction Act will make Biden one of the most successful legislatively successful presidents in modern history,” news site Politico wrote on Sunday. His ambitions “seemed like he was trying to squeeze a rhinoceros through a garden hose.” “That turned out to be more of a pony in the end, but that’s still pretty impressive.”
Also opposition from Democrats
For a long time it seemed that this attempt to reach a climate agreement would also fail. For a year and a half, the president has faced opposition from Republicans, but also from a number of Democrats. The run-up was a soap opera starring Joe Manchin. The vote of this Democratic senator from West Virginia was crucial to a majority, but he rejected one proposal after another. He was jokingly referred to as America’s most powerful Joe.
Democrats shuffled from clash to clash for more than a year, until two weeks ago Manchin agreed to an investment of $430 billion, of which 369 billion is for the climate. Of the rest of the money, drug prices will go down for some Americans. In return, Manchin was promised in the backroom that energy projects such as the Mountain Valley Pipeline gas pipeline, in his own state, will have an easier licensing system.
Manchin eventually gave in. “If I get the chance to improve US energy policy, and I do nothing, I should be ashamed of myself,” Manchin said of his spin. “These are solutions that Americans want. We can offer them these solutions, let’s not make it too political.’
Big alarm
The historic agreement goes back more than three decades. The first scientist to raise a major alarm against the US Congress was James Hansen in 1988. In 1988, this NASA scientist informed the Senate about the dangers of climate change. “The greenhouse effect has been detected and is now changing our climate,” he says. Although many politicians take his concerns seriously, nothing is being done about them. In 2018, Hansen, then 77, told the AP that he blames himself for not making his story more urgent.
It’s not like there’s no movement at all. In recent decades, several major climate laws have been proposed. But one is stranded in the Senate, the other in the House of Representatives. Republicans invariably complain about high costs and vague forecasts. Occasionally, during presidential election campaigns, something about the climate is mentioned. Presidential candidates Barack Obama and John McCain pledge to make climate legislation a priority in their 2008 election campaign. But that doesn’t help either.
Ten years later, the young climate activists of the Sunrise Movement occupied the office of Nancy Pelosi, with the support of Alexandria Ocasio-Cortez, the new Congresswoman. They demand that their Green New Deal be put on the agenda. The ambitious plan is to make the country climate neutral within ten years. But Pelosi doesn’t take the group and their ideas seriously, dismissing their ambition as ‘the Green Dream, or something’. In the 2020 presidential election, Joe Biden is backing many of their ideas—and it’s now paying off.
Electric vehicles and heat pumps
If the House of Representatives, where Democrats have a comfortable majority, approves the investment by the end of this week, billions of dollars will go into tax credits for electric vehicles and subsidies for clean energy initiatives. Funds will be made available for the decarbonisation of heavy industry. American households can apply for subsidies for the purchase of solar panels and climate-friendly heat pumps.
While progressive Americans had hoped for an even bigger climate investment of more than $500 billion, plus social reforms like free childcare and parental leave, it is seen as a victory for Biden and Democrats. “This is for you,” Chuck Schumer, the Democratic Senate leader on Sunday, shouted to all Americans who fought for a better climate for years. “It was a long, winding road, but we made it happen.”
From Build Back Better to the Inflation Reduction Act of 2022
Joe Biden has revolutionary economic ambitions when he takes office. The “Build Back Better” package is his version of the New Deal, the recovery plan that President Franklin D. Roosevelt used to pull the US out of the Great Depression in the 1930s. By taxing the very rich more, he wants to invest in infrastructure, the climate and the social economy. Converted $1,000 billion for the physical infrastructure, and $3,000 billion for the social safety net.
Republicans only agree with part of Biden’s infrastructure plans. Seven months after taking office, Biden is piloting the infrastructure bill through Congress, with the support of some Republicans, at a cost of $550 billion.
The remaining Build Back Better plans are being rewritten to pass as budget proposals. A budget proposal, unlike a law, only needs a small majority in the Senate. But not all Democrats agree with the social component of his plans.
On July 27, an agreement is reached with the opposing senator from West Virginia, Joe Manchin. The new $430 million investment package will be called the Inflation Reduction Act of 2022. A large part goes to the climate, medicine prices are also becoming cheaper for some Americans. Nearly a quarter of Biden’s plans are thus realized. But all socio-economic reforms, such as free childcare and parental leave, are not coming to fruition.
What’s in the Inflation Reduction Act?
cars Americans who buy an electric car can already get a tax benefit of $ 7,500. But with an additional investment, even more cars will become available.
Energy Funds will be raised for the decarbonisation of heavy industry. American households can apply for subsidies for the purchase of solar panels and climate-friendly heat pumps. In addition, companies can be fined if their methane emissions exceed a certain limit.
Climate Effects More than $60 billion is being invested in low-paid neighborhoods that are disproportionately affected by the effects of climate change.
Fossil fuels The government will auction more public lands and waters for oil drilling. There will also be tax credits for coal and gas-fired power stations that store CO2 underground. This part was a demand from Senator Joe Manchin.
Medicines Medicine costs are becoming cheaper for people with Medicare, a health insurance fund for the over-65s. There will also be a limit on how much they have to pay per year for expensive medicines. This can save this group thousands of dollars a year.