Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Time to take the RED Pill - 28th May 24
US Economy Slowing Slipping into Recession, But Not There Yet - 28th May 24
Gold vs. Silver – Very Important Medium-term Signal - 28th May 24
Is Gold Price Heading to $2,275 - 2,280? - 28th May 24
Stocks Bull Market Smoking Gun - 25th May 24
Congress Moves against Totalitarian Central Bank Digital Currency Schemes - 25th May 24
Government Tinkering With Prices Is Like Hiding All of the Street Signs - 25th May 24
Gold Mid Tier Mining Stocks Fundamentals - 25th May 24
Why US Interest Rates are a Nothing Burger - 24th May 24
Big Banks Are Pressuring The Fed To Losen Protection For Depositors - 24th May 24
Another Bank Failure: How to Tell if Your Bank is At Risk - 24th May 24
AI Stocks Portfolio and Tesla - 23rd May 24
All That Glitters Isn't Gold: Silver Has Outperformed Gold During This Gold Bull Run - 23rd May 24
Gold and Silver Expose Stock Market’s Phony Gains - 23rd May 24
S&P 500 Cyclical Relative Performance: Stocks Nearing Fully Valued - 23rd May 24
Nvidia NVDA Stock Earnings Rumble After Hours - 22nd May 24
Stock Market Trend Forecasts for 2024 and 2025 - 21st May 24
Silver Price Forecast: Trumpeting the Jubilee | Sovereign Debt Defaults - 21st May 24
Bitcoin Bull Market Bubble MANIA Rug Pulls 2024! - 19th May 24
Important Economic And Geopolitical Questions And Their Answers! - 19th May 24
Pakistan UN Ambassador Grows Some Balls Accuses Israel of Being Like Nazi Germany - 19th May 24
Could We See $27,000 Gold? - 19th May 24
Gold Mining Stocks Fundamentals - 19th May 24
The Gold and Silver Ship Will Set Sail! - 19th May 24
Micro Strategy Bubble Mania - 10th May 24
Biden's Bureau of Labor Statistics is Cooking Jobs Reports - 10th May 24
Bitcoin Price Swings Analysis - 9th May 24
Could Chinese Gold Be the Straw That Breaks the Dollar's Back? - 9th May 24
The Federal Reserve Is Broke! - 9th May 24
The Elliott Wave Crash Course - 9th May 24
Psychologically Prepared for Bitcoin Bull Market Bubble MANIA Rug Pull Corrections 2024 - 8th May 24
Why You Should Pay Attention to This Time-Tested Stock Market Indicator Now - 8th May 24
Copper: The India Factor - 8th May 24
Gold 2008 and 2022 All Over Again? Stocks, USDX - 8th May 24
Holocaust Survivor States Israel is Like Nazi Germany, The Fourth Reich - 8th May 24
Fourth Reich Invades Rafah Concentration Camp To Kill Palestinian Children - 8th May 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

How the New “Green Deal” Has Already Worked

Politics / Environmental Issues Mar 07, 2019 - 05:33 PM GMT

By: Rodney_Johnson

Politics If you have assets, income, or both, then you are responsible for every bad thing that has happened in the U.S. But don’t worry! The Green New Deal, co-sponsored by Rep. Alexandria Ocasio-Cortez and Sen. Ed Markey, will give you a chance to fix it.

All you have to do is sign over, well, everything to the central government, which will then use its wisdom to determine how we should live for the foreseeable future so that all outcomes are equalized and no one is left behind.

Good-paying jobs? Check.

Universal healthcare? Of course.

Free education? For everybody!

Pollution? Zero (after 2050).

Respect all indigenous people? You know it.

Consider every single environmental impact for every action ever undertaken? Duh.

After all, it’s your duty…

As you read the Green New Deal proposal, you’ll find that it says it’s not just a good thing to do this, it is the duty of the United States to go down this path.

The document would be laughable except for one thing. Few people are laughing.

More than 600 organizations signed in support of it, and so have dozens of individuals, including many Democratic Presidential hopefuls.

It’s hard to say any of them think this proposal, which is more of a college freshman’s dream or a description of Cuba or Venezuela from the good old days, is realistic, but that’s not the point.

As AOC, as she’s called, explained in her Instagram chat while chopping vegetables, the goal is to move the boundaries of the conversation far enough with the extreme Green New Deal proposals that a carbon tax would look like the moderate option.

America, you just got played…

The Overton Window

AOC and Markey used a tactic that recalls the Overton Window, a reference to a range of scenarios within two extremes that are considered possible.

The goal of the policy conversation isn’t to land on one particular thing, it’s to expand the window one direction so as to put more options on the table.

To be fair, the Overton Window was first described by political scientist Joseph Overton of the conservative Mackinac Center for Public Policy. This sort of gambit has been used by people of all political persuasions, and even parents when dealing with their kids.

The key to the conversation – don’t discuss the alternatives at the other end of the spectrum.

The entire Green New Deal has been priced out at $50 trillion to $90 trillion, but that includes stuff about healthcare, job guarantees, education, etc. Let’s focus on just climate change.

Beyond getting rid of airplanes and cows, the deal to reduce emissions by 40% to 60% by 2030 and completely by 2050 would require spending about $14 trillion, according to numbers from the American Action Forum (give or take a few trillion). That’s about three times the current spending plan of the U.S. government for all of 2019 (I didn’t call it a budget because there’s no balance).

And it won’t work.

It All Means More Taxes

The most generous estimates of how to limit climate change to 1.5 degrees Celsius (beyond which it doesn’t matter because the bad changes will happen anyway) all require nations around the world to participate – here’s looking at you, China and India – and some way to extract carbon from the air on a large scale.

The first one, participation, isn’t happening, and the second, carbon extraction, isn’t technically feasible today.

But forget that. As long as AOC and Senator Markey can make you feel good about reaching a “compromise” position that calls for widespread carbon taxes instead of these extreme measures, then hey, they’ve succeeded.

The carbon tax is just the tip of the melting iceberg. If that gets through, you can bet we’ll hear demands for all sort of other taxes to pay for all the “free” stuff. It’s amazing how things called “free” by the government end up being so expensive for taxpayers.

And of course, if the Intergovernmental Panel on Climate Change (IPCC) is correct on our changing planet, a carbon tax won’t do a thing to keep temperatures below 1.5 degrees Celsius. The changes brought about by such a tax would be a drop in the proverbial bucket. But they will take more assets from us and put them in the hands of the central government, which is clearly staffed by people who are smarter than us and know more than we do.

Notice something interesting…

Notice that Miami doesn’t show up in the national conversation. The residents of Miami aren’t waiting for some proposal on high. They passed an infrastructure funding plan and have begun to work on shoring up their town (pun intended) against the potential of rising sea levels.

But we can’t discuss mitigating the effects of climate change instead of fighting to eliminate rising temperatures in the first place, because that would be opening Overton’s Window the other direction and ruin the current narrative and take money away from the central government.

I can’t imagine a single national politician signing on to such a plan. What do you think about the Green New Deal? Good? Bad? Otherwise? Email me at

Rodney Johnson

Follow me on Twitter ;@RJHSDent

By Rodney Johnson, Senior Editor of Economy & Markets

Copyright © 2019 Rodney Johnson - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Rodney Johnson Archive

© 2005-2022 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in