3 ms·
First point, the last new deal didn't get us out of the great depression. You might recall that the great depression lasted throughout the 1930's. It was World
by garmaine 7y ago
First point, the last new deal didn't get us out of the great depression. You might recall that the great depression lasted throughout the 1930's. It was World War 2 and its aftermath that ended the depression.
But anyway, the only similarity is in the name. The FDR new deal built new infrastructure. The Green new deal replaces infrastructure. Adding infrastructure where there was none before increases productivity, and therefore causes economic growth. Replacing infrastructure has net-zero change and therefore while the activity adds to GDP, it has no lasting effect on the economy. And since it substitutes for things that would have led towards growth, it actually causes stagnation or decline.
In the social sciences, this is known as the "broken window fallacy." There's a lot of papers you can find with those search terms.
If you want an idea of the best-case scenario of what life would be like under the Green New Deal, look to Japan with it's 20+ years of economic stagnation. Except without nationalized pensions we'd be asking a whole generation to live through work-until-you-die conditions. I'm sorry, but I don't think I want to do that to my kids unless it is a real do-or-die scenario as the alarmists claim. But the alarmists are wrong. The world is not ending tomorrow, or even the day after. We can deal with the change at a pace that doesn't result in economic suicide.