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AOC’s ‘Green New Deal’ would destroy the economy: Art Laffer

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AOC’s ‘Green New Deal’

Former Reagan economic adviser Art Laffer on a report that Rep. Alexandria Ocasio-Cortez’s (D-N.Y.) “Green New Deal” would cost households in five key swing states $70K in the first year.

What factors should policymakers consider when proposing policies to address climate change and promote economic growth simultaneously?

Alexandria Ocasio-Cortez, popularly known as AOC, recently unveiled her ambitious “Green New Deal” plan, aiming to address climate change while creating jobs and promoting economic growth in the United States. However, economist Art Laffer argues that the plan would ultimately destroy the US economy.

Laffer, known for his supply-side economic theories, asserts that the Green New Deal would impose excessive taxes and regulations, leading to a significant decline in economic activity. He contends that the plan would cost trillions of dollars, which would have to be funded by higher taxes on the “middle class,” preventing them from investing in the economy.

Moreover, Laffer argues that the plan’s proposal to rely solely on renewable energy sources to power the economy would be impractical and unrealistic. The shift away from traditional energy sources would create significant disruptions in supply chains, leading to job losses and economic slowdowns. Additionally, renewable energy technologies are not yet advanced enough to power the entire economy, which would negatively impact productivity.

Laffer suggests that instead of focusing on the Green New Deal, policymakers should promote market-based solutions to address climate change. This approach would involve incentivizing businesses to invest in renewable energy technologies, rather than imposing excessive regulations and taxes on them.

Furthermore, Laffer contends that the US should continue to rely on traditional energy sources such as natural gas and oil, which have been instrumental in driving the country’s economic growth. He argues that attempts to limit oil and gas production would harm the US economy, as the country would become dependent on foreign sources of energy.

In conclusion, Laffer’s argument against the Green New Deal is centered on his belief that the plan would impose excessive taxes and regulations, and that it is not feasible to transition entirely to renewable energy sources in the immediate future. While addressing climate change is undoubtedly a critical issue, policymakers must take into account the economic implications of any policy proposals to ensure a sustainable and prosperous future for the US economy.