SB 112-16: Ron Paul Act (Passed)

[Mr. Reactionary]

RON PAUL ACT

SECTION I: NAME
a. This act shall be referred to as the Ron Paul Act

SECTION II: FEDERAL RESERVE MANDATES
a. The mandates imposed upon the Federal Reserve, when in conflict shall prioritize the minimization of inflation.  92 Stat. 1887 shall be amended accordingly.

SECTION III: TIMING
a. This act shall take effect July 4, 2023.

Sponsor: DeadPrez

Debate on this bill is now open.

[Mr. Reactionary]

Looks like an anti-inflation bill that adjusts the Humphrey-Hawkins Act to protect the value of our currency. I think i can get behind that.

[Mr. Reactionary]

So Humphrey-Hawkins passed in 1978 to begin the Volcker powers of curbing inflation. It mandated a monetary policy that maintains long-run growth, minimizes inflation, and promotes price stability. This however is contrasted with the Feds "dual mandate" tied into century-old discredited Keynesian ideas about unemployment. The Philip Curve shows an inverse relationship between keynesian stimulus and inflation so the dual mandate is contradictory and forces the Fed to often make dumb decisions related to inflation and stable prices. This bill clarifies that when at cross purposes the Fed should prioritize low inflation and stable prices over Keynesian stimulus that overheats inflation and prices. Passing this bill will give the Fed clearer guidance and stronger tools to whip inflation now.

[Mr. Reactionary]

If I understand this correctly, this would get rid of the dual mandate?

Sort of. It subordinates the employment mandate to the inflation mandate. The first mandate would not be repealed but the latter would be given express priority.

[Mr. Reactionary]

If I understand this correctly, this would get rid of the dual mandate?

Sort of. It subordinates the employment mandate to the inflation mandate. The first mandate would not be repealed but the latter would be given express priority.

Well frankly I'd argue we've reached there already with the markets pricing in a recession and the Fed showing few signs of slowing their tightening despite poor forward looking indicators. It's the so-called "recession we have to have." So really this legislation is just expressing what is basically already true.

Correct, albeit with express legislative guidance.

[Mr. Reactionary]

I move we proceed to a final vote. 24 hours to object.

[Mr. Reactionary]

A final vote is now open on this bill lasting until 11:59 PM Eastern Friday night or until everyone votes whichever occurs soonest. Please vote aye, nay, or abstain.

RON PAUL ACT

SECTION I: NAME
a. This act shall be referred to as the Ron Paul Act

SECTION II: FEDERAL RESERVE MANDATES
a. The mandates imposed upon the Federal Reserve, when in conflict shall prioritize the minimization of inflation.  92 Stat. 1887 shall be amended accordingly.

SECTION III: TIMING
a. This act shall take effect July 4, 2023.

[Mr. Reactionary]

Aye

[Mr. Reactionary]

13 hours left. 6 still need to vote.

[Mr. Reactionary]

Bill passes 8-5-1-4.

[Mr. Reactionary]

RON PAUL ACT

SECTION I: NAME
a. This act shall be referred to as the Ron Paul Act

SECTION II: FEDERAL RESERVE MANDATES
a. The mandates imposed upon the Federal Reserve, when in conflict shall prioritize the minimization of inflation.  92 Stat. 1887 shall be amended accordingly.

SECTION III: TIMING
a. This act shall take effect July 4, 2023.

Passed 8-5-1-4 in the Atlasian Senate assembled.

- R, PPT