Democrats are flirting with a dangerous economic theory

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More Democrats are willing to throw out payment plans for expensive programs due to a dangerous, fringe economic idea: modern monetary theory (MMT). Several Democrats have consulted with economist and former Bernie Sanders campaign advisor Stephanie Kelton, who's largely responsible for popularizing MMT and deficit spending. And February has already seen Rep. Alexandria Ocasio-Cortez justify the exorbitantly-priced Green New Deal by pointing to MMT.

But to know why it won't work, we have to understand what it is.

Put simply, MMT turns traditional fiscal policy on its head. We usually think Washington uses American tax money to fund programs like Medicare and national defense. But MMT adherents argue that because the U.S. government creates that money in the first place, it actually doesn't need tax revenue to fund programs, pay entitlements, or settle debts. The federal government has the power to simply issue its own money to whoever needs it. And since the U.S. government has this power, according to Kelton, expensive policies like college-for-all, military expansion, and national infrastructure development are all naturally affordable.

But much of the popular discussion around MMT stops here—perhaps because this is where it gets complicated. Some hear MMT's claim that governments can afford anything they want and deficits are irrelevant, and, thus, spending can be practically limitless. But MMT recognizes governments still have to deal with inflation. More dollars floating around translates into more people demanding scarce resources, causing prices to rise. The way MMT fights demand-fed inflation is not through "printing" less money, but rather by taking money back out of the economy through taxation. Contrary to popular media's discussion of MMT, the theory still sees taxation as a necessary policy tool.

While some disagreements between MMT economists and orthodox economists are relatively semantic, MMT really just has far too many problems in practice.

Balancing fiscal policy to control inflation requires a much less politicized budgetary process than the one we have. For MMT to work, we would first need something like a Federal Reserve for fiscal policy—which we don't have. And advocating MMT requires an unreasonably optimistic view of interest rates. So long as the growth rate exceeds the interest rate, we should always have enough cash to pay our debts. But even as progressive economist Paul Krugman notes, deficits tend to raise interest rates, slowing investment and growth.

That's where MMT faces a crisis. If debt accelerated to, say, 300 percent of GDP–– which would be sooner rather than later if something like the Green New Deal were passed and funded through deficits––and interest rates were 1.5 percentage points higher than growth, Washington would have to run a budget surplus equal to 4.5 percent of its GDP. If the U.S. had to do that today, we would have to run an $872 billion surplus. That's nearly a trillion dollars doing nothing for Americans outside of holding off an economic disaster. So when Democrats like Rep. Ocasio-Cortez use MMT to dismiss concerns about their programs causing massive deficits, they fundamentally misunderstand its principles.

Selling MMT to the public is a way to endorse popular, expensive programs without admitting tradeoffs.

Most economists aren't persuaded by MMT. No significant academic journals have published MMT papers. But ambitious Democrats don't need to worry about winning over economists. Selling MMT to the public is a way to endorse popular, expensive programs without admitting tradeoffs.

This strategy will backfire economically —but it could politically, too. Back in the 2018 primary elections, candidates endorsed by the moderate New Democratic caucus won 86 percent of their races, while only 40 percent of the candidates endorsed by the Bernie Sanders-esque Our Revolution organization won nominations. In the November general elections, 23 New Democrats flipped seats from red to blue, while the Revolution progressives flipped zero.

Moderates found more success than progressives because the vast majority of Americans don't feel represented by the right-populist Republicans or progressive Democrats. Rep. Ocasio-Cortez may be setting the tone for the rest of her party, but when we step out of our social media bubbles, we find most Americans want more civil leadership and fewer war cries from Washington. And given 71 percent of Americans now think addressing the debt should be among the federal government's top three priorities, Democrats should rise above provocative "sloganeering" and champion fiscal responsibility in the 2020 campaigns, formerly a standard GOP platform, and potentially win over disillusioned Republican voters.

There are plenty of plans for pursuing progressive goals like better healthcare coverage and environmental sustainability that don't rely on a widely-dismissed calculus or require America to risk a serious economic crisis. Democrats would be smart to chase after one of those instead.

John Kristof is a research fellow at the Sagamore Institute and a contributor for Young Voices, writing frequently on fiscal policy and other economic issues. Follow him on Twitter.

So long, Schwab! Here are FIVE crazy Klaus Schwab quotes to remember him by.

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After 50 years, everyone's favorite Bond villain is stepping down.

For years, Glenn has covered World Economic Forum founder Klaus Schwab and all of his diabolical machinations. Schwab has been the man at the helm of the WEF since it was established in 1971, pushing the world closer toward a dystopia. Klaus Schwab is the mastermind behind the Great Reset. In fact, he wrote the book.

But on Tuesday, May 21st, the WEF confirmed that Schawb would be stepping down as executive chairman and taking a place among the board of trustees. The WEF did not say who would replace Schwab as the organization's figurehead, but instead commented that the organization's president, Børge Brende, and the board would take on most executive duties.

So in honor of Schawb's long and "distinguished" career, here are five quotes that reflect his diabolical nature:

"I respect China's achievements which are tremendous over the last over 40 years, I think it's a role model for many countries."

"Nobody will be safe if not everybody is vaccinated."

"You are presenting new ways to minimize the spread of misinformation, and you want to combat extremist views in the internet."

"Imagine that in 10 years we will be sitting here with implants in our brains [...] and I can immediately tell you how people react."

"The future is not just happening, the future is built by us [World Economic Forum]."

Are your kids doing well in school? They might not be doing as well as you think.

A recent study found that the majority of parents in the US think their children are doing better in school than they actually are, and we largely have COVID to thank for that.

Due to the disastrous educational and social policies implemented during the COVID pandemic, millions of kids across the country are lagging and are struggling to catch up. They are further impeded by technology addiction, mental illness, and the school system, which is trying to mask just how bad things are. However, due to continued COVID-era policies like grade inflation, your kid's report card may not reflect the fallen educational standards since 2020.

Here are five facts that show the real state of America's youngest citizens. It's time to demand that schools abandon the harmful COVID-era policies that are failing to set our children up for success.

Gen Alpha is struggling to read

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Literacy is the foundation of education. Being able to read and write is paramount to learning, so when a young student struggles to gain literacy, it severely impacts the rest of their education. According to a 2021 report from the National Assessment of Educational Progress (NAEP):

In 2019, some 35 percent of 4th-grade students and 34 percent of 8th-grade students performed at or above NAEP Proficient.

This means that 65 percent of 4th-graders and 66 percent of 8th-graders performed below NAEP proficient. As to be expected, the effects of this lack of literacy are still being felt. A 2024 report called the "Education Recovery Scorecard" created by Harvard and Stanford researchers found that in 17 states, students are more than a third of a grade level behind pre-pandemic levels. Moreover, in 14 states, students are more than a third of a grade level behind in reading specifically.

Grade inflation

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If you thought the U.S. dollar was the only thing suffering from inflation, you would unfortunately be mistaken. Grades are also being inflated, caused by more lenient grading practices that began during the pandemic and have yet to return to normal. While students undoubtedly love this practice at the momentafter all, who doesn't like an easy A?in the long run, it only makes their lives more difficult.

This practice has seen attendance and test scores drop while GPAs rise, making it more difficult for colleges to decide which students to accept, as more and more students have 4.0s. Students are also less prepared for the increased workload and stricter standards they will face when they start college. Overall, there has been a decline in preparedness among students, which will inevitably cause issues later in life.

Failure is no longer an option (literally)

To mask just how ill-prepared students have become, some universities have decided to double down on their grading system. Some schools, like Oregon University, have decided that they will no longer give students failing grades. Instead, if a student fails a class, they will simply receive no grade, thus keeping their academic record blemish-freebecause heaven forbid a student should face the consequences of their own actions.

These universities are doing a real disservice to an entire generation of students. To cover up their failures, they are waving students through their programs, failing to prepare them for the world they will face.

Addiction to tech

Tech addiction has been a concern for parents since before the pandemic, but unsurprisingly, the lockdowns only made it worse. A 2023 study showed that internet addiction in adolescents nearly doubled during the lockdowns when compared to pre-pandemic numbers. This doesn't come as a surprise. Forcing kids to stay inside for months with the internet as their sole connection to the outside world is the perfect recipe for addiction to tech.

Mental illness

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The mental health crisis has been growing across the world for decades now, but it took a turn for the worse during the pandemic. Both a study from Iceland and Australia recorded a decline in the mental health of their youth during the pandemic, and a study out of San Francisco measured physical changes to the brains of children that resembled the brains of people who suffered childhood trauma.

5 SURPRISING ways space tech is used in your daily life

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Is your vacuum cleaner from SPACE?

This week, Glenn is discussing his recent purchase of a Sputnik satellite, which has got many of us thinking about space and space technology. More specifically, we've been wondering how technology initially designed for use outside Earth's atmosphere impacted our lives down here on terra firma. The U.S. spent approximately $30 billion ($110 billion in today's money) between the Soviet launch of Sputnik in 1957 and the Moon Landing in 1969. What do we have to show for it besides some moon rocks?

As it turns out, a LOT of tech originally developed for space missions has made its way into products that most people use every day. From memory foam to cordless vacuums here are 5 pieces of space tech that you use every day:

Cellphone camera

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Have you ever seen a photograph of an early camera, the big ones with the tripod and curtain, and wondered how we went from that to the tiny little cameras that fit inside your cellphone? Thank NASA for that brilliant innovation. When you are launching a spaceship or satellite out of the atmosphere, the space onboard comes at a premium. In order to make more room for other equipment, NASA wanted smaller, lighter cameras without compromising image quality, and the innovations made to accomplish this goal paved the way for the cameras in your phone.

Cordless vacuums and power tools

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When exploring the moon, NASA wanted astronauts to use a drill to collect samples from the lunar surface. The problem: the moon has a severe lack of electrical outlets to power the drills. NASA tasked Black & Decker with developing a battery-powered motor powerful enough to take chunks out of the moon. The resulting motor was later adapted to power cordless power tools and vacuums in households across America.

Infrared ear thermometer

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What do distant stars and planets have in common with your eardrum? Both have their temperature read by the same infrared technology. The thermometers that can be found in medicine cabinets and doctors' offices across the world can trace their origins back to the astronomers at NASA who came up with the idea to measure the temperature of distant objects by the infrared light they emit.

Grooved pavement

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This one may seem obvious, but sometimes you need a massively complicated problem to come up with simple solutions. During the Space Shuttle program, NASA had a big problem: hydroplaning. Hydroplaning is dangerous enough when you are going 70 miles an hour in your car, but when you're talking about a Space Shuttle landing at about 215 miles per hour, it's an entirely different animal. So what was NASA's space-age solution? Cutting grooves in the pavement to quickly divert water off the runway, a practice now common on many highways across the world.

Memory foam

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If you've ever slept on a memory foam mattress, it probably won't come as a shock to find out that the foam was created to cushion falls from orbit. Charles Yotes was an astronautical engineer who is credited with the invention of memory foam. Yotes developed the technology for the foam while working on the recovery system for the Apollo command module. The foam was originally designed to help cushion the astronauts and their equipment during their descent from space. Now, the space foam is used to create some of the most comfortable mattresses on Earth. Far out.

5 most HORRIFIC practices condoned by WPATH

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Whatever you know about the "trans movement" is only the tip of the iceberg.

In a recent Glenn TV special, Glenn delved into Michael Schellenberger's "WPATH files," a collection of leaked internal communications from within the World Professional Association for Transgender Health (WPATH). Glenn's research team got their hands on the WPATH files and compiled the highlights in Glenn's exclusive PDF guide which can be downloaded here. These documents reveal the appalling "standards" created and upheld by WPATH, which appear to be designed to allow radical progressive surgeons to perform bizarre, experimental, and mutilating surgeries on the dime of insurance companies rather than to protect the health and well-being of their patients. These disturbing procedures are justified in the name of "gender-affirming care" and are defended zealously as "life-saving" by the dogmatic surgeons who perform them.

The communications leaked by Schellenberger reveal one horrific procedure after another committed in the name of and defended by radical gender ideology and WPATH fanatics. Here are five of the most horrifying practices condoned by WPATH members:

1.Trans surgeries on minors as young as 14

One particular conversation was initiated by a doctor asking for advice on performing irreversible male-to-female surgery on a 14-year-old boy's genitals. WPATH doctors chimed in encouraging the surgery. One doctor, Dr. McGinn, confessed that he had performed 20 such surgeries on minors over the last 17 years!

2.Amputation of healthy, normal limbs

BIID, or Body Integrity Identity Disorder, is an “extremely rare phenomenon of persons who desire the amputation of one or more healthy limbs or who desire a paralysis.” As you might suspect, some WPATH members are in favor of enabling this destructive behavior. One WPATH commenter suggested that people suffering from BIID received "hostile" treatment from the medical community, many of whom would recommend psychiatric care over amputation. Apparently, telling people not to chop off perfectly healthy limbs is now considered "violence."

3.Trans surgeries on patients with severe mental illnesses

WPATH claims to operate off of a principle known as "informed consent," which requires doctors to inform patients of the risks associated with a procedure. It also requires patients be in a clear state of mind to comprehend those risks. However, this rule is taken very lightly among many WPATH members. When one of the so-called "gender experts" asked about the ethicality of giving hormones to a patient already diagnosed with several major mental illnesses, they were met with a tidal wave of backlash from their "enlightened" colleges.

4.Non-standard procedures, such as “nullification” and other experimental, abominable surgeries

If you have never heard of "nullification" until now, consider yourself lucky. Nullification is the removal of all genitals, intending to create a sort of genderless person, or a eunuch. But that's just the beginning. Some WPATH doctors admitted in these chatlogs that they weren't afraid to get... creative. They seemed willing to create "custom" genitals for these people that combine elements of the two natural options.

5.Experimental, untested, un-researched, use of carcinogenic drugs 

Finasteride is a drug used to treat BPH, a prostate condition, and is known to increase the risk of high-grade prostate cancer as well as breast cancer. Why is this relevant? When a WPATH doctor asked if anyone had used Finasteride "to prevent bottom growth," which refers to the healthy development of genitals during puberty. The answer from the community was, "That's a neat idea, someone should give it a go."