Quite a significant budget deficit reducing bill out overnight. Details as per the table below but from a “good society” perspective there are some very good signature things here.
Allowing Medicare to negotiate drug pricing will go a long way to reducing some of the absolutely mad mark-ups on drugs. Now, some people feel really strongly about this issue, which we won’t get into here, but everyone has at least one or two favourite examples of price gouging for marginal drugs, which will be partially addressed by allowing Medicare (as a purchaser of scale) to throw its enormous bargaining power around.
Overall, with fairly contractionary monetary and fiscal policy, expect the US to slow (which we already did, but more so).
Small update, below is a great summary of the impacts from Jason Furman (former CEA chair).
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