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.

The Biden Admin EXPANDED abortion access because they DON'T believe in the Constitution

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This month has already produced an extreme example of why we need a functional and more conservative Congress in order for America to have a chance at moving forward—because the Left does not believe in the Constitution.

Sure, if you confronted a Democrat in Congress, they would probably claim some sort of allegiance to the Constitution—but as a practical matter, they do not believe in it.

Instead, the Left has put all of their eggs in the basket of the executive branch. Why? Because it has the furthest reach through all the various departments, and it can move the fastest—in short, because it’s the most dictatorial. It only takes a department head to write a new memo, or even better, the President to sign a new executive order to carry the force of law.

The Left has put all of their eggs in the basket of the executive branch.

Do you recall any of the Left’s favorite Supreme Court decisions over the years—something like gay marriage for example—and how Republicans immediately tried to subvert it, using the executive branch to try to nullify the decision? Yeah, that never happened. But that is exactly what Democrats have done in recent weeks to expand abortion access.

Democrats only consider the Supreme Court legitimate when they approve of the decisions. When the miraculous overturning of Roe v. Wade happened last summer, President Biden called it “a realization of an extreme ideology and a tragic error by the Supreme Court.”

Democrats only consider the Supreme Court legitimate when they approve of the decisions.

Recently the FDA approved local pharmacies to issue abortion pills. For the first 20 years after these pills were developed, they were not treated like typical prescription drugs. They had to be dispensed in-person by a doctor. That in-person requirement is now gone.

Keep in mind that the Left’s go-to line is that abortion is always about the health and safety of women, yet a 2021 peer-reviewed study found that chemical abortions have a complication rate four times greater than surgical abortions. Between 2002 and 2015, the rate of abortion-related ER visits following use of the abortion pills increased by 507 percent.

Chemical abortions have a complication rate four times greater than surgical abortions.

And now the Biden administration is making these less-safe abortions much more accessible. Thanks to the FDA’s rule change, Walgreens and CVS have already agreed to dispense abortion pills in states where abortion is legal—effectively turning these stores into new abortion clinics.

As for states that have abortion bans, "Team Biden" announced a new way around those too. Three weeks ago, the Justice Department issued a legal opinion that the U.S. Postal Service is allowed to deliver abortion pills anywhere, even in places where abortion is illegal. What’s their rationale? That the sender cannot know for sure whether the recipient will use the pills illegally or not. So it’s totally okay.

The U.S. Postal Service is allowed to deliver abortion pills anywhere, even in places where abortion is illegal.

Georgetown Law professor Lawrence Gostin told the Washington Post that this Justice Department opinion is “a major expansion of abortion access in the United States.”

So, to recap—the Biden administration has used the FDA, the Justice Department, and the Post Office, which all fall under the executive branch, to provide an end-run around the Supreme Court’s Dobbs v. Jackson decision.

Expanding abortion was easy—simple policy tweaks and declarations that carry the force of law without an ounce of input from actual lawmakers in Congress—all because it comes from the grotesque, bloated, apparently pro-death executive branch.

Glenn is one of the most outspoken critics of the World Economic Forum and their vision to use crises to reconstruct the world order known as The Great Reset. The recent WEF summit in Davos confirms what Glenn has long warned about: globalist elites seek to upend our democracy, freedoms, and way of life to achieve their utopian climate goals. Here are 15 quotes from the 2023 Davos Summit, revealing their true intentions in their own words:

1. Saving the planet

When you hear the word, "Davos," the first thought that should pop into your mind is an elite group getting together to save the world from imminent climate disaster... at least they think of themselves that way. According to John Kerry:

I mean, it's so almost extraterrestrial to think about saving the planet.

2. Private jets

What most people think when they hear the word "Davos" is a group of global elites flying in on private jets to talk about climate change... and yes, John Kerry does own a private jet, no matter how many times he denies it:

I fly commercial [...] Exclusively.

3. Global Collaboration Village

You always hear some weird, dystopian projects coming out of WEF, like "The Global Collaboration Village," a new metaverse community aimed at strengthening "global cooperation." It sounds like the next installment of Brave New World. According to Klaus Schwab, Founder and President of the WEF:

The Global Collaboration Village is the pioneering effort to use the metaverse for public good, to create global cooperation and to strengthen global cooperation in the metaverse or using metaverse technologies. For me, it's a dream coming true because the village allows the Forum to create a more larger and open platform where everybody can participate.

4. Climate revolution

However, the core theme throughout WEF summits is the immediate need for a climate revolution and how businesses are selfishly blocking the revolution because they want to make an extra buck. Here's how John Kerry summed up the sentiment:

How do we get there? The lesson I have learned in the last years [...] is money, money, money, money, money, money, money.

5. Do or die

This often turns into alarmist language, like having to choose between wealth and our planet's survival... Joyeeta Gupta, Professor of Environment and Development in the Global South at University of Amsterdam, said it eloquently:

If we do the minimum at this pivotable moment in our history, then we and our children – even if we are rich – will live in the danger zone. But if we – business people, governments, citizens, cities – take action today, then we and our children will have a future worth looking forward to.

6. Colossal risks

Potsdam Institute's director Johan Rockström, used similar language, claiming we are "taking colossal risks with the future of civilization":

We are taking colossal risks with the future of civilization on Earth, we are degrading the life support systems that we all depend on, we are actually pushing the entire Earth system to a point of destabilization, pushing Earth outside of the state that has supported civilization since we left the last Ice Age 10,000 years ago.

7. Rain bombs

"Colossal risks" like... rain bombs? We didn't make that up. Ask Al Gore:

That’s what’s boiling the oceans, creating these atmospheric rivers, and the rain bombs.

Courtesy of the World Economic Forum

8. Survival comes down to this

How do we secure our survival? According to UN Secretary-General Antonio Guterres, we have to "end our addiction to fossil fuels." This entails wiping out our entire energy industry, displacing millions of workers, and relying on global governments to usher in a new green industry. In his words:

So, we need to act together to close the emissions gap, and that means to phase out progressively coal and supercharge the renewable revolution, to end the addiction to fossil fuels, and to stop our self-defeating war on nature.

9. Complete transformation

It isn't hyperbolic to argue that the globalist climate goals will completely transform the world economy. Even EU Commission President Ursula von der Leyen admitted:

The net-zero transformation is already causing huge industrial, economic and geopolitical shifts – by far the quickest and the most pronounced in our lifetime. It is changing the nature of work and the shape of our industry.

10. Scientific necessity

Of course, to bring about this "net-zero" transformation, we will have to override small, "political expediencies" like democracy to do what is "scientifically necessary." According to Zurich Insurance Group’s head of sustainability risk John Scott:

We’re living in a world right now where what’s scientifically necessary, and what is politically expedient don’t match.

11. Illegal hate speech

Doing away with "political expediencies" would also require the censorship of dissent, which would likely manifest in hate-speech laws. When asked by Brian Stelter how the discussion of disinformation relates to everything else happening today in Davos, European Commission VP Věra Jourová shared this prediction:

Illegal hate speech, which you will have soon also in the U.S. I think that we have a strong reason why we have this in the criminal law.

12. Climate first

We will also have to forego national interests on the international stage. America won't be able to advocate for policies and interests that benefit Americans. Instead, we will sacrifice national interests for the sake of global climate interests. French economy minister Bruno Le Maire said:

The key question is not China First, US First, Europe First. The key question for all of us is Climate First.

13. The role of war

We can also expect globalist leaders to use crises, like the war in Ukraine, to expedite the "net-zero transformation." Chancellor of Germany Olaf Scholz said:

Ultimately, our goal of achieving carbon neutrality by 2045 has been given an additional boost by Putin’s war. Now we have even more cause to move away from fossil fuels.

14. Blame game

Globalist leaders will continue to blame ALL of the crises in our society on climate change to justify the "net-zero transition," from the energy shortage to "mistrust, selfishness [and] xenophobia." Prime Minister of Spain Pedro Sanchez said:

Our present struggle is not only against Putin or the energy shortage. It is also against fear, mistrust, selfishness, xenophobia, and environmental disaster. And its outcome will define life in the West and beyond for decades to come.

15. Sacrifice for the greater good

While we sacrifice our national interests for the sake of the "greater global good," we can expect our foreign enemies, like China, to benefit. Suisse Chairman Axel Lehmann said:

The growth forecasts now for China is 4.5%. I would not personally be surprised when that would be topped.

Conclusion

Glenn has been clear about the distinction between wanting to transition to green practices on your own accord and being forced into that transition by globalist, unelected elites. Leaders at Davos will continue to use alarmist language to justify their crackdown on democracy and freedom to bring about their leftist utopia. We have to cut through the alarmist language and in order to protect our freedoms.

Glenn has focused on exposing the dark side of the gender movements waging our culture war, and now, there's a new "trend" emerging as an offshoot to the transgender movement. A growing online community, particularly of men, who consider themselves "involuntarily celibate" or "incels" believe they can live a better life as a trans woman. Why? This community purports the world is rigged against men, particularly against traditionally "unattractive men." What's the solution? Stop being a man...

Incel or "involutarily celibate" communities have existed online in the dark corners of Reddit and Discord for years. The groups are marked by a hatred towards women, blaming them for rigging the world in their favor and denying them of sex. Several members of this growing community have been responsible for large acts of violence, most notably Alek Minassian, who killed 10 and injured 16 after driving a van into a busy area of Toronto in 2021.

However, the transgender movement has presented a new option for incel members: if you can't beat 'em, join 'em... or, in the Transmaxxers' case, "become them."

The online Transmaxxer's Manifesto says, “Since females have the upper hand on the dating market, transitioning from male to female will usually improve your options when it comes to getting sex.” According to the manifesto, transitioning to female not only opens up a different pool of sexual partners, but moreover, you gain access to female-only spaces and are “able to extract resources from males.”

“Since females have the upper hand on the dating market, transitioning from male to female will usually improve your options when it comes to getting sex.”

Another member wrote, "If you do not currently feel like living as a female you might have to work on fixing that ... Identifying as male or being emotionally attached to a male body is bad for you if being male results in you living a bad life.”

This new movement is significant because it is in stark contrast to the mainstream narrative that "transgenderism" is an innate quality. Now, it can be an "option" people choose for social advantage. A moderator going by the alias “Vintologi” on the Transmaxxing Discord server, which boasts over 1,200 members, told The Daily Caller:

Transmaxxing is about transitioning for personal gain rather than focusing on things like "gender identity." ... What matters when it comes to medical transition is whether or not said transition would actually be beneficial, thus the extent to which gender identity is innate does not inform us much regarding when medical transition is appropriate.

One incel member on Reddit lamented that he can't Transmaxx to "have sex with white trans women" and to have "all the benefits of [being] female."

Transmaxxing sheds light on a concerning issue as an increasing number of people, particularly the youth, identify as "transgender." What used to be considered as a "finge case" is now being seen as a social advantage. Glenn recently sat down with de-transitioner Chloe Cole, and the amount of pressure she experienced to become a transgender man AS A TEENAGER was ASTOUNDING. She discussed the new community, friendships, and affirmation she gained when she started her transition journey, and she lost ALL of those social perks when she began de-transitioning. She exchanged affirmation for death-threats, friendships for stone-cold silence.

Transmaxxing is a very specific example of a larger movement that is deeply concerning. Not only is the thansgender ideology problematic on its own merits, but now, we are seeing a rise of a distinction of "social advantage" based on gender affiliation. This is deviating away from the original notion that transgenderism is an innate quality. Now, many consider it more "socially advantageous" to identify as transgender than with your biological gender.

At the same time President Biden's misplaced classified documents were sitting in his house, garage, and office at the Penn Biden Center, a whole lot of Chinese money was flowing around him. Is this just a coincidence, or did the Chinese get anything in return? Investigative journalist John Solomon joins to break down what was going on here ...

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