(TruthandLiberty.com) – On Sunday, December 19, moderate Democratic Sen. Joe Manchin (D-WV) told Fox News host Brett Baier he would vote “no” on President Joe Biden’s Build Back Better social and climate change legislation. The West Virginia Senator said his concerns about inflation, the economy and the national debt led him to conclude there wasn’t any more room to negotiate.
In the third quarter of 2021, the economy expanded by 2.1%. After Manchin revealed his position, Goldman Sachs revised its GDP forecast for 2022. Assuming Build Back Better never passes into law, company economists projected the failure would have negative economic growth consequences overall. It lowered the growth forecast from 3% to 2% in the first quarter.
— The Hill (@thehill) December 20, 2021
In the second quarter, economists anticipate growth would fall from 3.5% to 3%, and in the third quarter, growth would drop again from 3% to 2.75%. Economists also said with the failure of the legislation, corporate tax rates likely would remain the same and have positive impacts on company profits.
Economists said they believed Congress still had an opportunity to pass smaller economic legislation incentivizing manufacturing and supply chain issues. Regarding inflation, Goldman Sachs said it’s likely to rise as high as 7% over the next several months before it begins to decrease next fall.
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