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I went to a day long discussion of "How to Pay for the Green New Deal" at Harvard Law School a few months ago which was pretty much all about MMT, heavily referencing Keynes' work on how to pay for WWII.  What rubbed me the wrong way was that there was no estimate of what it would cost and what we now pay for our present energy system.

So I looked for myself.  My estimate is that the USA pays about $661 billion per year on petroleum products, natural gas, and coal and those Communists at the International Monetary Fund says that the USA subsidizes this fossil foolishness with about $649 billion per year.  That's $1.2 trillion per year.

Have yet to see an economist who has figured out what happens when our energy system is renewable and the cost of fuel goes away.  What are we going to do with that $1.2 trillion per year we won't have to spend?

Solar IS Civil Defense

by gmoke on Fri Oct 25th, 2019 at 09:32:22 PM EST
It is possible that a Green New Deal would be deflationary, as has been suggested for Medicare for All. The cost of fossil fuels is heavily subsidized, so the loss of those subsidies could be seen as reduced government spending. That could be countered by shifting the subsidies to renewable energy - once the political obstacles to investment in renewable energy have been overcome. In any case we are still below what the government can safely spend and inflation is not a real threat, even if its phantom will always seem to spook the very rich. And that is before we consider how better to use the current 'tax expenditure' of >$1 Trillion/year on Trump's tax cut for the rich.

 Trillion/year on tax cuts for the rich.  

"It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Fri Oct 25th, 2019 at 10:31:10 PM EST
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The loss of fuel costs for energy generation would simply be an add to national productivity.


"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Fri Oct 25th, 2019 at 10:32:22 PM EST
[ Parent ]

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