Mahoning Valley - In Washington, Senate Democrats are heading back to their home states for the August break after passing a key part of President Biden's agenda Sunday.

It's a bill, they say, will lower drug costs for seniors and makes the biggest investment ever to fight climate change.

But after speaking with Valley economists on what this could mean for the every day family, the bill seems to be missing major components to ease inflation.

"We are not going to see any immediate impact in the economy because of this bill," said Omid Bagheri, Assistant Professor with Kent State Salem's Department of Economics.

Senate Democrats passed the Inflation Reduction Act that lowers healthcare costs, invests in clean energy and raises the minimum corporate tax on businesses.

"The name in itself, the Inflation Reduction Act, is kind of a misnomer," said Bob Badowski, Chair of the School of Business, Associate Professor and Director of the MBA program at Westminster College. "You can't spend your way out of debt or out of inflation."

"This is mostly about fiscal policies," Bagheri added. "Which is working and changing some tax rules." Bagheri explained the energy supply will go up with this act, with eventual impacts to inflation reduction. "This will not happen immediately," he added. 

In a statement, President Biden said the bill would "make government work for working families again." But, an independent analysis and local economists project the move will have little immediate impact on inflation.

"For most people we're not going to see anything happen," Badowski added. "It might even increase inflation a bit in that there are taxes that are being raised for corporations and ultimately those are going to trickle down to us. This definitely helps the government because they're collecting more taxes."

"The three major things in that bill is more macro than micro impact," Bagheri said. "An average person is going to feel it. Which we will, but it's going to be marginal and it's going to be long term. It's not going to be huge and immediate."

"Coming from an economic standpoint, we got into this trouble through government spending," Badowski explained. "So, what are we doing? We're going to spend more money? It doesn't make a lot of sense."

The act also lowers prescription drug costs for Medicare recipients. Economists point out the bill is missing subsidies for major inflation concerns like gas and food prices.

"There are a lot of things we could do to reduce inflation," Badowski added. "I think right now what really hurting most people are energy prices. Whether it be gasoline or electric and food prices have been going up. It doesn't seem to be in this bill."

Bagheri added investing in clean energy and increasing supply of energy will reduce the national cost of production. With the increase in demand caused by the increase in taxes the act will bring, it could have inflation reduction impacts, "which is going to happen, but not immediately," he said. "After 2 or 3 years, the impacts could be felt in the economy. No matter what class you are, with the high prices on everything, this is not an immediate solution that can help quickly."

House Speaker Nancy Pelosi said that chamber will vote on the senate's climate change and tax bill Friday. It is expected to pass and then will go to President Biden's desk to be signed.

Bagheri and Badowski agree this will and should be heavily modified before it reaches President Biden's desk.