The econ team at American Action Forum, led by former CBO Director Douglas Holtz-Eakin, take a shot at looking how pricey a Green New Deal might be. And, you know, it’s pricey. From the report:
For me, a way to think about the GND is that it is simultaneously a radical overhaul of the production and use of energy in the United States (the “Green” part) and a sweeping revision of the nature of economic relationships in the society (the “New Deal” part). As the table clearly demonstrates, both are quite expensive. The green agenda — electricity grid, transportation system, guaranteed energy-efficient housing — adds up to $8.3 to $12.3 trillion over the next 10 years. The economic agenda — jobs, health care, food security — accounts for another $42.8 to $80.6 trillion.
The first cut at a grand total runs from $51.1 to $92.9 trillion between 2020 and 2029. Even if the estimates are 5 to 10 times too high (and I suspect they are more likely too low), it is hard to wrap one’s head around numbers these large. But if you manage to do so, be aware that the likely social upheaval would be even larger.
Wow, I remember when writing about Candidate Trump’s $12 trillion tax cut seemed pretty wild. Of course the GND enthusiasts don’t like to get bogged down with numbers. For them, it’s all about action and energy and signaling and direction. Well, from this analysis, maybe numbers should fit in there somewhere, too. Again the GND’s fatal flaw is that it doesn’t take climate change seriously, not to mention budgets.Published in