Wednesday, October 23, 2019

Close Encounters of a Green New Deal Kind — Douglas Holtz-Eakin

In the end, MMT looks like an extreme version of conventional economics in which there is no independent monetary policy and there are a lot of unused resources. But when resources get tight, the reflex is command and control central planning.
This cuts to the quick of it. The question is how much market state (where free markets determine outcomes, in theory at least) and how much welfare state (where the economy is managed based on desired outcomes). This is an ongoing dialectic among Libertarians, conservatives, liberals and progressives in the US.

However, the GND is different in that it is a special case. The name indicates that it is being compared to the New Deal that addressed the effects of the Great Depression. Proponents also point to the American economic response in WWII, in which John Kenneth Galbraith played a major role. In the minds of the proponents of the GND, this is about government mobilizing resources and "taking charge" in order to meet an existential threat. Opponents view this as overreaction to a supposed threat that does not appear to exist, in their minds.

This is reminiscent of the lead up to WWII, where Americans in general preferred isolationism to preparation until events were forced on them at Pearl Harbor. Then the race to catch up.

American Action Forum Douglas Holtz-Eakin | President

5 comments:

Ryan Harris said...

I view it differently. Previously in post war period, western economies were driven by real improvements --science and engineering /tech driving improvements to human existence. The GND is the result of the abandonment of science for dialectic thinking and implores a reduction in standards of living for ideological non-real purposes. It goes against the recommendations of nearly ALL scientists and engineers who work on solving real problems in healthcare and energy. Right on the money but wrong on real.

Peter Pan said...

The Green New Deal isn't at a stage of development where it can be watered down.

Matt Franko said...

Yeah Ryan it’s amazing all the GNDers have no Science Degrees but go all around all the time talking about “science!”... what the hell do any of those people know about it?

GNDer AOC thinks seed germination is “magic!” Probably never took Chemistry in her entire life... is ignorant of and scared of a kitchen garbage disposal ... I wouldn’t trust her to check the oil in my car...

Matt Franko said...

They just want to be materially relevant for a change... but they aren’t ... so they do as Art trained do and just make stuff up...

S400 said...

” I wouldn’t trust her to check the oil in my car...”

Lol! Matt Franko can’t even check the oil on his car.