Why the New Green Deal Won’t Work – Dr. William Anderson CHP ep. #17

Dr. William Anderson is our guest today. He is a professor of economics at Frostburg State University, Senior Fellow at The Mises Institute and he’s been studying and writing about Austrian Economics since 1981.

You can listen to our conversation here:

iTunes:

Youtube

We discuss his latest article “AOC’s Green New Deal the Great Leap Forward”. He explains why centrally planned economies never have worked in the past and why they still won’t work today.

https://mises.org/wire/aoc-and-green-great-leap-forward

Dr. Anderson explains how The New Green Deal is based upon the same ideology of The Great Leap Forward in China, The Five Year Economic Plans of the Soviet Union, and the U.S. Invasion of Iraq in 2003. All of these are based upon the idea of collectivism, in which individuals whether in the U.S. or other countries, have no inherent natural rights. 

The Green New Deal is unworkable due to the reality of human nature and the material world we live in and could only be implemented by force. Those advocating for it leave out how it will be paid for, how the private property seized will be distributed and what will happen to those who disagree with their all encompassing plans.

Dr. Anderson equates the insanely ambitious plan of The Green New Deal to transform the entire U.S. economy to what occurred when Communist Chinese Government implemented the Great Leap Forward from 1958 -1962. This plan forced upon the Chinese people resulted in an estimated 45 million dead, mainly through starvation. The Green New Deal shares the same collectivist principles which The Great Leap Forward was based upon.

https://en.wikipedia.org/wiki/Great_Leap_Forward

We also discuss The Soviet Unions attempt to centrally plan their entire economy for what was at the time noble goals.  The people running Gosplan (The Soviet Union’s Economic Central Planning Committee) were extremely bright and well educated people who knew that the Soviet system couldn’t work. They continued to support a system that they knew was corrupt and unworkable because they received better accomodations, a car, better food and more relative freedom than the masses, which the system was supposed be helping. We discuss how those who support the current establishment are also rewarded and those pushing The New Green Deal will be as well.

https://en.wikipedia.org/wiki/Gosplan

We dive into the specific economic reasons for why a centrally planned socialist or communist economy can’t work and that ultimately they must be implemented and kept running by force. 

Dr. Anderson also discusses some key economic ideas which the New Green Dealers leave out.

Opportunity Costs

https://wiki.mises.org/wiki/Cost 

Scarcity

https://mises.org/library/we-do-not-live-post-scarcity-world 

https://wiki.mises.org/wiki/Scarcity 

Those who are selling The New Green Deal say that they’ll raise taxes and have the Federal Reserve pay for it. Here is the Austrian Economist perspective on what will happen if that plan is implemented.

https://mises.org/wire/mmt-even-more-dubious-aocs-green-new-deal 

The ideas that The Green New Deal are based upon have been implemented in the past with disastrous results. In the 20th century its estimated that collectivist governments killed 100 million of their own citizens.

History of Death By Government

https://www.hawaii.edu/powerkills/NOTE1.HTM 
There are two ways in which a society can be based upon; Individualism or Collectivism. To learn more about the fundamental differences between these two principales read Ayn Rand’s “Textbook of Americanism”. Despite its title its only 18 pages long. 

https://fee.org/media/4959/textbook-of-americanism-by-ayn-rand.pdf

What is Austrian Economics? It is a school of economic thought that is based upon the ideas of inherent individualism, human nature, and how best to flourish in a world with scarce resources. 

It started in Austria and that’s why its called “Austrian Economics”. It’s really the economics of peace and freedom. 

https://mises.org/what-austrian-economics 

Professor Anderson also talked about the many  economic myths that still persist to this day about The Marshall Plan, The Great Depression and World War II.
Below is an explanation of this from FEE.org by Lawrence Reed. 

https://fee.org/resources/great-myths-of-the-great-depression/ 

It wasn’t government spending or the growth of the state that created the post World War II economic boom. 

https://www.mercatus.org/publication/economic-recovery-lessons-post-world-war-ii-period 

By Cecil Bohanan 

For more information about the economics of freedom please visit:

https://mises.org (The Mises Institute) 

and

https://fee.org (Foundation for Economic Education) 

If you don’t have time for the full hour here is a timeline:

Intro

1:00 Where I became familiar with his work:

https://fee.org/people/william-l-anderson/ 

https://mises.org/profile/william-l-anderson

1:26 Dr. Anderson’s Article “AOC, The Green New Deal and The Great Leap Forward”

https://mises.org/wire/aoc-and-green-great-leap-forward 

The Green New Deal Outline

https://assets.documentcloud.org/documents/5729035/Green-New-Deal-FAQ.pdf

The Great Leap Forward was an economic and social plan implemented by the Chinese Government from 1958-1962 that led to the death of an estimated 45 million people.

The Great Leap Forward in China from 1958-1962 killed an estimated 45 million people.
2:55 The dangers of the Totalitarian Left
3:55 Progressive leadership, AOC, Elizabeth Warren, Bernie Sanders are not compassionate, but want transformative power to drive humanity in a certain direction.
4:29 Difference between Economists and Urban planners – the dangers of seeing people as statistics.

 

5:17 Paul Krugman at one time didn’t support the 70% income tax.

6:30 What is an appeal to authority?
8:07 The economic fantasy of high speed rail powered by windmills – what happens when people can’t heat their homes? Death toll could be enormous.
9:09 The New Green Deal as population control. Paul Elrich’s book “Population Bomb” and Jimmy Carter’s Global 2000 report.
11:00 Mao’s Great Leap Forward killed 45 million. Dangers of basing policies which use government force to control the lives of millions upon pseudo science. Russian Scientist Lysenko and his role in the Great Famine. Book Small is Beautiful by Schumacher still holds up Lysenko’s work as legitimate.
12:34 Conservatives have bad narratives as well – foreign policy. Vietnam based on really bad narratives.
13:42 The War in Iraq – based on the false belief that if we can only get enough resources into it, it will work. Afghanistan 17 years of war.
14:56 Donald Trump’s Wall based on same principles as Iraq War and The Green New Deal only on smaller scale.
17:00 There are problems in society but centralized planning isn’t the answer. The Soviet Union tried it for 70 years through its GOSPLAN committee which had 100% control over their economy. People running it were extremely bright and well educated. System was destined to fail and they knew it. Vast complex economic model can’t simulate an entire economy.
19:43 Those economists and others knew the Soviet System couldn’t work but still supported the establishment to profit.
21:47 The Green New Deal and schemes like it appeal to a higher purpose. In the Soviet Union it was for Equality and in China it was to help raise the peasant out of poverty. Dorothy Day said China had ended hunger – while tens of millions were starving to death.
22:45 Only way to implement The New Green Deal is through a total dictatorship. Socialists always have a great vision for other people but don’t intend to live as the “masses” do.
25:10 Mao lived in luxury and never missed a meal while tens of millions were starving. The hypocrisy of those advocating for a lower standard who fly on private jets to five star hotels.
26:00 Why not managing forests led to the Great Smokey Mountain fires in Tennessee. Native Americans practiced Forest Management.
28:00 Global Warming blamed for more severe hurricanes and for wildfires, but more people are living next to unmanaged forests and the coast.
29:10 Those who counter the current climate narrative like Dr. Roy Spencer and Judith Curry are attacked and ostracized.
29:39 Some Democrats want to put climate deniers in prison or worse. All government actions are based upon force. Radley Balko quote The legislatures need to be asked before passing a law “are you willing to kill for this”?
31:00 Young people believe the propaganda. Mao used young people in his Culture Revolution as enforcers. People who lived through it won’t even talk about it because it was so bad. Green New Deal seems like it was written by kids.
32:29 People fail to talk about how many problems we all face are actually caused by  The Federal Reserve, The War on Drugs, and the Wars in the Middle East. $5.6 Trillion spent on Wars in Middle East and its not just Americans that have died in these wars. How the Russians paid for the Invasion of Afghanistan and how the US said it would pay for the Invasion of Iraq.
35:26 The problem is the Welfare/Warfare State and the key debate is really about Individualism versus Collectivism. Neocons love of war and their economics are based on collectivism.
38:00 The dangers of appealing to National Greatness to push major projects like The Green New Deal. How the New Green Deal isn’t anything like putting a man on the moon.
42:00 The New Dealers don’t understand Opportunity costs. Those pushing the Green New Deal the same way as the Bank Bailouts. Many Free Market Capitalists opposed the Bank bailouts.
44:46 Economic myths – The Marshall Plan, The New Deal, The Great Depression and WWII.
45:54 Socialist systems fundamentally can’t work do to the lack of the pricing mechanism. Private Property, Prices, and Profit Loss are what is needed in a world of scarcity to guide resources.
47:00 The profit loss signal in the market is like the pain and pleasure signal is the human body. Green New Dealers think the market is inefficient and want to supplant voluntary arbitrary valuation for their own expert opinions. They equate the price system as chaotic and want to impose order.
49:25 Humans are fundamentally religious by nature – If you get rid of a person’s god you have to replace it with another” Carl Jung – Many people see the State as their god – the super entity. Chariman Mao thought that after he  killed off 50-60 million people he could create a system that would work. Collectivist interventions create more chaos which is the opposite of why they were undertaken. Communist and socialism are systems which claim to bring order.
52:00 The thought that socialism will create order is like the Neocons idea that regime change in Iran, Venezuela or Nicaragua will create order. The opposite is true. People don’t like puppet regimes.
55:00 The only product governments have to sell is order. They seem to create disorder in order to sell more of their product. They create more chaos not less when they intervene which then they claim they need to intervene to fix what they’ve already done. The Green New Deal won’t happen like they say it will. It will impoverish most people and result in a dystopia similar to The Hunger Games. This is what happens when people use force to direct resources.
56:00 Wealth disparity and misallocation of resources are mainly a function of The Federal Reserve System and the other collectivist elements within our government.
57:15 The dangers of treating interest rates like a Keynesian. Aggregate demand viewpoint.
58:20 The Federal Reserve is propping up 20% of economy. One way to prop these assets up is through government debt.
60:00 Americans don’t understand assets are real things. The value can only be manipulated by force. Ethanol subsides cause other assets to be devalued while increasing through force the price of corn.
Keynesians never ask why there are idle resources to begin with.
61:00 John Maynard Keynes on a long enough curve we are all dead anyway. (might be apocrvaphyl but Keynesian Economics doesn’t account for long term negative affects of manipulating interest rates and endless government borrowing)
62:00 Those who support the establishment benefit greatly from their work to keep the system going. The top five wealthiest suburbs in the U.S. are around Washington DC. Those is the Tech world and the political class are totally out of touch.
63:00 The New Green Deal could be a trial balloon to redefine “centrist’. The Hunger Games is applicable to The Green New Deal where the elite rules the impoverished masses.
63:45 The total government burden is on Tax Payers is $7 trillion per year over $4 trillion to D.C. (I stated incorrectly that it’s “an investment”. Individuals are forced to pay this or they’ll lose their assets, their freedom or their life”.
The beneficiaries in D.C. aren’t producing anything and in fact they are preventing production from taking place.
Those in D.C. think they are the Heartbeat of this Country, in reality they are the Heart Attack.
64:20 Dr. Houston using Blockchain in Healthcare Ep. 17 https://www.youtube.com/watch?v=Rz6O7IXQ7FE 
HPEC uses blockchain technology to allow doctors to get back to doing what they are meant to do.
Dr. Mary Ruwart Medical Freedom Ep. 16
What we all dislike about the healthcare system isn’t caused by the Free Market but by the massive regulations which are sold to us a means to correct these issues. People will follow incentives. (Right now the incentives are for drug companies to create the most expensive and least effective drug they can.)
65:00 Those who are pushing The New Green Deal believe that through force and their brilliance they can transform an entire economy. It’s never been done and everyone who has tried has failed it resulted in the deaths of millions (over a hundred million).
Are people ready to live with half the electricity? What happens when there’s not enough electricity to heat homes? Most who support The Green New Deal aren’t aware of what has happened in the past with The Great Leap Forward, The Cultural Revolution and the Soviet System of economic central planning and the gulags.
And we are told we have only 12 more years. How is a former bartender an expert on the climate and the economy? Have the New Green Dealers been given a gift of prophecy?
There is a fundamental difference between how a Free Market system  and a Socialist system work.

 

Thanks for listening. 

Brad Miller

The Chronically Human Podcast 

The Great Leap Forward in China from 1958-1962 killed an estimated 45 million people.
Paul Krugman’s take on why Alexandria Ocasio-Cortez is an expert in economic matters.
Paul Krugman’s change of mind over the 70% Income tax rate.
An appeal to authority
The origins of the dire warnings of population control.
Jimmy Carter and the Global 2000 Report written in 1977
He was a Rhodes scholar – That for me is a read flag.
Conservative Foreign Policy based on the collectivist narrative just like The Green New Deal
Soviet Centralized Planning
Why the Soviet System collapses
Dorothy Day
Hypocritical socialists and people sending out the Sky is falling model
It’s really like the secular version of Pascal’s wager.
Great Smoky Mountains Fire
Roy Spencer
Judith Curry
Dems want to throw Climate deniers in prison
Play Launched with Title: “Kill climate deniers”.
Professor (psychology of music) advocates for the death penalty for Climate Deniers 2012.
Here is his explanation after pressure from the university
Mao’s Cultural Revolution
Mao’s Red Guard
Ron Paul End The Fed in chp 2 explains what the Federal Reserve is (not a reserve nor is it Federal) and the damage it causes in society
The cost of the war on drugs
Penatagon estimates wars in Midfle East since 2001 have cost $5.6 trillion taxpayer dollars.
Over 500,000 Iraqis died between 2003-2013
Soviet invasion in Afghanistan
Welfare-Warfare State
Ayn Rand: Textbook of Americanism
Individualism vs. Collectivism
Bush wants to put man on Mars
Opportunity costs
The Marshall Plan Myth
Myths of the Great Depression
Myth that WWII ended Great Depression
The Socialist calculation problem
Importance of profit and loss signals in the market economy
For more on the concept of humans being fundamentally wired to think in religious archetypes check out:
Japanese invasion of China was marked by horrific atrocities. Over ten million Chinese civilians are estimated to have been killed.
The political causes of famine
Highest median income suburbs are all around Washington DC.
Errors of Keynesian Economics
How easy money is rotting the economy
Ethanol subsidies
Death by government – attempts to transform entire economies on collectivist principles through force in the past