FLASH: The Green New Deal is beyond Crazy
If you have not been disappointed by politics lately, you have noy been paying attention.
The political fantasies of today may not become some major change immediately, but they do set the tone for where could head in the next few years.
The “Green New Deal” sounds too crazy to pass, so it has not fazed the market.
This notion is an attempt to move our nation to places far beyond the realm of common sense, where the laws of economics govern.
The Green New Deal ideas are Far Out!
One proposal could end air-travel as we know it for cleaner-burning high-speed rail lines. If that sounds familiar, it is much like the 1 recently abandoned by Governor Gavin Newsom (D) in California. When ultra-liberal politicians start making arguments based on fiscal conservatism look out!
Another Green New Deal idea suggested razing every existing building to rebuild and replace with more energy-efficient methods over the next decade. That require tearing down, disposing of and rebuilding over 10,000 properties a day.
In our world of investments, ideas start to get priced in the more likely they are to become reality.
So do not worry about the crazy things you hear and read. The market will tell us way before all of the airplanes are grounded.
But, in candor, we do have some huge issues that need to be resolved.
Red, White, and Blue Deal.
This deal as proposed by economist Andrew Packer involves fixing immigration, addressing income inequality, and dragging some lagging institutions into the 21st Century.
Mr. Packer’s proposals are all based around 1 Key concept: Incentives matter.
Consider illegal immigration.
He says we do not really need a multi-billion dollar comprehensive Wall, i and all of the people I know disagree.
We do need some increased physical border security in some places that’s an improvement over what we have. I expect we will get there and the Wall is part of that solution Plus, we should require that only US citizens are entitled to entitlements.
Previous generations of immigrants had no safety net when they came here, and they still came. Ensuring welfare benefits only go to US citizens will create a powerful reason not to come to the country illegally.
Also, making employers check their workers for illegal immigrants through an E-Verify type program would also do much to ensure that only those here legally have a job.
That ensures America will continue to be a beacon of freedom, and to ensure we get the best and brightest from other lands who want to become part of the American tradition. And if they become citizens later, great, they can then qualify for our benefits.
Income inequality exists under all political systems. While it can lead to a lot of strife, it is important to understand that, under capitalism, the poor tend to become better off too. The poorest among us have found tremendous savings and even job opportunities thanks to businesses built by now-billionaires who took on the risk.
Notably, technology has us covered to address income inequality in a way that ensures the poorest among us can live in dignity.
That is because, in the coming decades, we will see a large disconnect in how we work, thanks to the rising use of robotics, artificial intelligence, and other technologies that we know about.
It s time to rethink how we do other things.
Our primary K-12 school system has seen changes in 19th Century. We have seen a disproportional rise of administrative and support staff relative to teachers. Likewise, the rise of administrative and support staff in healthcare has been a huge driver of higher costs, added to that left wing academia has taken the lead and created generations of progressive socialists, not capitalist.
It is time to work on deregulations, and remove the incentives that have led to the rise of administrative/support/socialist roles over primary roles such as teachers teaching the core values and history of America.
In politics as in everything else in life, incentives matter. Capitalism is all about building something better and more efficient, our politics should be too.
Red, White and Blue Deal is as American as American gets; the American idea of freedom and self-determination.
Editor’s Note: Andrew Packer writes the Insider Hotline investment advisory, serves as investment director for the Financial Braintrust, and writes the monthly newsletter Crisis Point Investor.
Have a terrific Holiday weekend.