Alexandria Ocasio-Cortez's Green New Deal is a radical front for nationalizing our economy

By Ryan Bourne.

"But even in some parallel universe where it was possible to implement an agenda that would replace the whole country's energy supply with government-financed renewables, refurbish every building to improve energy efficiency, eliminate gas burning cars, build extensive high-speed rail and cut the number of flights and cows to near zero, the cost would be astronomical. 

Previous estimates from Stanford engineers of meeting power demand through clean, renewable zero-emission energy sources put capital costs at $14.6 trillion (almost three-quarters of current annual GDP). The running costs, coupled with all the other environmental programs, would therefore take up a huge chunk of economic resources, effectively cutting vast private sector activity.

That's why the resolution seeks to mobilize society as in World War II, which Ocasio-Cortez claims is the appropriate analogy.If the nation can be convinced the overwhelming social goal is countering the existential threat of climate change at all costs, then people would be willing to make sacrifices — be it lost economic growth, fewer flights or less beef.

Yet it's difficult to make that case when you then tack on a myriad unrelated policies to the program. According to the resolution, decarbonization must also be supported by a massive expansion of social spending. Ocasio-Cortez's plan suggests it's not true that we must take a hit today to ensure the planet's future —  according to this we'll be richer too!

Just to ram home the absence of trade-offs, we are also told this will be financed by printed money. Ocasio-Cortez subscribes to the view that governments can apparently spend and spend forever, with the only constraint being the capacity of the economy. Yet, even under the crank Modern Monetary Theory model that recommends this, inflation will surely result from so much new government spending.

By investing in inefficient energy sources and taking labor and capital away from productive industries, economic capacity will shrink as well — making this outcome more likely."