Her document says that funding the Green New Deal requires World War II levels of government spending of between 40 and 50 percent of gross domestic product.
Today, federal spending amounts to 21 percent of GDP, or $4.4 trillion annually. Increasing it to between 40 and 50 percent of GDP would require doubling government expenditures to between $84 and $105 trillion over 10 years (and that’s without factoring in rising GDP). But Warren’s wealth tax would raise just $2.75 trillion over 10 years. And according to the nonpartisan Tax Foundation, Ocasio-Cortez’s 70 percent marginal rate might raise at best $189 billion over 10 years, and could actually cost the federal government $63.5 billion in lost revenue by stifling economic growth and encouraging capital flight.
Taxing the rich won’t come close to covering the costs of the Green New Deal, which includes a bunch of socialist policies that have nothing to do with climate change. Manhattan Institute budget expert Brian Riedl has calculated the 10-year costs using liberal and nonpartisan sources. The results are stunning: $32 trillion for a single-payer health care plan; $6.8 trillion for a government jobs guarantee; $2 trillion for education, medical leave, job training and retirement security; and between $5 trillion and $40 trillion to fund universal basic income to support those who are “unwilling” to work. (The final price depends on how “universal” it is.) Grand total? Between $46 and $81 trillion.
So some Democrats are pushing a plan that would cost $40 trillion dollars or more.
I’m often asked if Donald Trump will win the 2020 election. I got it wrong in 2016 so I am more cautious now. I say he shouldn’t be able to win, but you can never underestimate the ability of the Democrats to select the wrong candidate and screw up. So at present I give him a 40% chance of re-election.
If the Democrats keep pushing the Green New Deal, I give him a 90% chance plus they retake the House and get over 60 seats in the Senate.