To the economic genius who messaged me about my post COMRADE KAMALA SPEAKS ABOUT THE COST OF THE GREEN NEW DEAL  and suggested that I knew little or nothing about government fiscal finance …

Your position that deficits and the increase in our national debt is perfectly acceptable as long as the nation’s rate of growth surpasses interest rates and that the national debt will shrink of its own accord is intellectually and financially unsound.

(1)  Your assumption that the national debt will shrink of its own accord is falsified by two assumptions, both incorrect.

      (a) With any reduction in interest rates, the cost of servicing the present debt may be cheaper, but this slows the rate of cumulative debt growth and does not necessarily reduce the debt in a significant manner given the levels of debt serviced.

      (b) This scenario assumes that the government spendthrifts will cease or reduce their spending, not drastically increase it for social programs such as those suggested in the Green New Deal made popular by Alexandria Ocasio-Cortez, but is little more than a revision of the Canadian Socialists Dream of Marxism known as the Leap Manifesto.

(2)  The accrued benefits from this increased social spending are ephemeral and are a function of population growth whereas investments in our crumbling and decaying infrastructure which is in desperate need of repair, replacement, or build-out is longer-lasting and will serve people well into the future. Due to the costs of the first, one might realistically assume that the politicians who are wont to purchase support from the special interests and buy votes with entitlement programs will be loathe to re-direct spending from social programs into infrastructure programs. And if you look at the infrastructure programs in California, the bellwether state for socialism, you will find a multi-billion dollar train to nowhere that will never pay off its costs and is little more than a union work project with massive benefits to politically-connected special interests.

(3)  Even worse, your suggestion would increase the nation’s sensitivity to economic collapse should something cause interest rates (a measure of financial risk/reward) to increase drastically, possibly as soon as the implementation of a China-Russia-Europe replacement for national debts denominated in dollars -- which would reduce the needs of foreign trading counterparties to hold and use dollars for their energy, industrial, and commercial needs. Without this type of dollar support, we cannot just keep printing money like the Weimar Republic. Consider the political havoc a nearly equally divided populace has wrought, where marginal candidates need only win a plurality, not a majority, and assume office.

(4)  You do not anticipate the reactions of the financial markets to the uncertainty inherent in a scheme where fiscal restraint and responsibility is lacking. In uncertain times, the market is less likely to encourage growth and consumers are nervous about spending both on branded necessities and discretionary impulse items.

(5)  Your formulation says nothing about the fraud, waste, and abuse inherent in any government-run financial or social scheme. It appears that the politicians and special interests will continue stealing until someone holds them accountable. And, as we have seen from the Obama-Clinton scandals, it won’t be our government’s regulatory or law enforcement agencies.

How dangerous are the progressive socialist democrats?

Encouraging leaking classified or critical defense secrets…

Attempting to destroy our Constitutional checks and balances so that the mob rules…

Bottom line …

PRUDENCE, MODERATION, AND AN UNDERSTANDING OF HISTORICAL PRECEDENCE IN ALL THINGS POLITICAL.

We are so screwed when Democrats are not held accountable for what they say and do – and the GOP sits on their hands dreaming “establishment” dreams while ignoring conservatives.

In the words of George Orwell, “A people who elect corrupt politicians, impostors, thieves, and traitors are not victims… but accomplices.”

-- steve