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AOC's "green deal" will require a ton of "corporate cronyism"



Amazon is taking its ball and going home, and New York Dems are actually celebrating.

I wasn't a huge fan of the deal New York and Amazon worked out: The race among cities to bribe businesses to set up shop in their backyards has a lot of problems.

But what's just astounding to me is how to win a Green New Deal that would use the powers of the state – taxes, subsidies, regulatory bullying, etc. – to herd whole industries in alignment with their vision of just and green society, and at the same time, these very tactics when actually put into practice

The most prominent architect of the GND is New York Rep. Alexandria Ocasio-Cortez. Under her proposal, cows might suffer, but humans will enter into all the wonderful new jobs and free health care here utopian scheme would provide.

AOC rejects the idea that traditional market economics or fiscal bookkeeping should be any hindrance to her scheme .

"I think the first thing that we need is child or break the mistaken idea that taxes pay for 1

00 percent of government expenditure," she recently told NPR's Steve Inskeep. “It's just not how government expenditure works. . . . Government projects are often financed by a combination of taxes, deficit spending and other kinds of investments – you know, bonds and so on. ”When Inskeep pointed out to here that deficit has been paid back with taxes, AOC reversed It's an impressive lack of embarrassment, that's OK because it's not spending, it's investing. Borrowing tens of trillions for "investments" will pay for itself, "because we're creating jobs."

The Amazon deal would have created some 25,000 jobs with an average annual salary of $ 150,000, but AOC was against it because of the agreement amounted to "creeping over or one of the world's biggest corporations."

Maybe it did. But there is news for AOC and others trying to use the precedent of the original New Deal as an excuse to get the band back together: This is how New Deals work.

The original New Deal was a bonanza for big business. In their effort to mobilize the US economy to fight the Depression, the New Dealers favored big businesses and associations – cartels, guilds, syndicates, etc. – at every turn. The largest corporations individually or in association wrote the "codes" – i.e., regulations – of the National Recovery Administration and other agencies for their own benefit. It was all done in the name of efficiency and progress.

For instance, the big chain movie houses of the 1930s – the Netflixes and Hulus of the time – wrote the codes in such a way that independents were almost out of business , even though 13,571 of the 18,321 movie theaters in America were independently owned.

A review board chaired by legendary lawyer Clarence Darrow investigated the NRA and found that, in "virtually all the codes we have examined, one condition has been persistent. . . . In Industry after Industry, the larger units. . . have their own advantage written the codes, and then, in effect and for their own advantage, assumed the administration of the code they have framed. ”

This is what happens any government pursues industrial policy: The biggest stakeholders demand to law their beaks if they are going to go along. The resolution by AOC says it will "invest in the infrastructure and industry of the United States to sustainably meet the challenges of the 21st century." As my American Enterprise Institute colleague (and zealous enemy of corporate welfare) Timothy Carney writes in the Washington Examiner, "all of these dreams become real only if the federal government forwards of billions and billions to General Electric, Siemens, monopoly utilities, Tesla, Google and the other corporate giants, who have the right lobbyists and position themselves to pocket the handouts. ”

The lesson of such efforts throughout American history and across the world is that when the government hugs big business, big business think back, and its embrace leaves the rest of us in the cold.

The Amazon the deal wasn't the opposite of what AOC wants; it was a trial run.


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