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.

Join Glenn and Stu this Monday, January 20th, starting at 11 a.m. Eastern, for an unforgettable livestream of Donald Trump’s second inauguration. Broadcasting live from the heart of the nation’s capital, Glenn will bring you unparalleled coverage during the last hour of his radio program of this historic moment as the United States ushers in what Glenn describes as a "golden era" under Trump’s leadership. After his radio program, join Glenn for BlazeTV's live stream of the inauguration with special guests, live commentary, and the energy of being right on-site at this historic event for coverage you don’t want to miss.

Subscribe to BlazeTV+ today to be part of this historic event. Use the promo code Glenn47 to receive $47 off your annual subscription and gain access to this and more content from your favorite BlazeTV hosts. Don’t wait—this is your chance to witness history live with Glenn and the team as we look toward the future of America with BlazeTV!

4 ways Biden is SABOTAGING Trump on his way out of office

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President Biden has less than a week left in the White House, but that doesn't mean he's down for the count quite yet.

Next Monday, January 20th, President-elect Trump will be officially sworn into office, marking the beginning of his second term. But after such a bitter and contentious election, the Democrats aren't ready to roll over. Instead, they have been working around the clock to ensure that Trump will face as many obstacles and challenges as possible the minute he is sworn in. These political landmines are designed to sabotage his presidency—at the cost of the well-being of the American people.

Biden's job approval rating currently sits around 38.7 percent, one of the lowest approval ratings of any president, he has nothing to lose from these reckless ploys. Here are four ways Biden and the Left are trying to sabotage Trump:

Pardoning criminals

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In November, President Biden customarily pardoned the Thanksgiving turkey ... along with his son Hunter and dozens of other controversial criminals, including 37 felons on death row. Hunter's 11-year-long blanket immunity sets a dangerous precedent for future presidents, and we may never know the full extent of the Biden family's crimes and corruption.

Destroying U.S. energy

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Biden has made several moves that have damaged America's ability to produce its energy independently, including canceling the Keystone XL pipeline on his first day in office. Earlier this month, Biden signed another order that has dire consequences for the energy sector, effectively blocking any new drilling off the U.S. coast indefinitely. This not only further kneecaps the U.S. oil industry during a time when gas and energy prices are on the rise, but moreover, the way the executive order was written means Trump will have a much harder time undoing it. Thanks, Biden.

Escalating overseas wars

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America's involvement with the ongoing war in Ukraine has been tenuous from the beginning, but under Biden, it has escalated to a Cold War-like proxy war. Neither pleas from Americans in need nor threats from Russia have deterred Biden. He has approved countless aid packages sent to Ukraine, totaling billions of dollars. Recently, Biden has decided to up the ante by supplying Ukraine with long-range missiles, despite Putin's warnings that Russia would consider this an act of war. It's almost like Biden wants to start WWIII before handing the reigns over to Trump.

Installing a "shadow cabinet"

For years Glenn has warned of the dangers of the deep state, and its very existence has been denied ... until recently. Shortly after the election Democratic Rep. Wiley Nickel made a disturbing speech on the House floor where he proposed the creation of a "Shadow Cabinet" designed to hamper the Trump administration and to step in if Trump were removed from office. This "Shadow Cabinet" would be composed of Democrat counter-picks to Trump presidential cabinet members, and they would scrutinize every act made by the Trump administration and propose alternative actions. This just proves that the deep state will do anything to stop President Trump.

How California leadership is to blame for HORRIFIC wildfires

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California's progressive policies emphasize ideology over lifesaving solutions. The destruction will persist until voters hold their elected officials accountable.

America is no stranger to natural disasters. But it’s not the fires, floods, or earthquakes that are the most devastating — it’s the repeated failures to learn from them, prevent them, and take responsibility for the damage.

My heart goes out to the families who have lost homes, cherished memories, and livelihoods. But if we’re going to help California rebuild and prevent future disasters, we need to confront some uncomfortable truths about leadership, responsibility, and priorities.

California — ironically, in the name of environmentalism — continues to ignore solutions that would protect both the environment and its residents.

While Californians continue to face heart-wrenching losses, those who have the power to enact change are mired in bureaucracy, regulation, and ideologies that do nothing to protect lives or preserve the land. The result? A state that keeps burning, year after year.

Where did all the water go?

We all know that water is essential to life. When NASA searches for signs of life on other planets, it looks for water. Yet, California has spent decades neglecting its water infrastructure. The state hasn’t built a new major reservoir since 1979 — over 40 years ago. Back then, California’s population was roughly half what it is today. Despite massive population growth, the state’s water storage capacity has remained frozen in time, woefully inadequate for current needs.

Moreover, billions of gallons of rainwater flow straight into the ocean every year because no infrastructure exists to capture and store it. Imagine how different things could be if California had built reservoirs, aqueducts, and desalination plants to secure water for its dry seasons.

Water is life, but the state’s failure to prioritize this essential resource has put lives and ecosystems at risk.

Misplaced priorities and critical leadership failure

This neglect of critical infrastructure is part of a larger failure of vision, and in California, the consequences of that failure are on full display.

Consider the progressive leadership in Los Angeles, where the mayor cut the fire department’s budget to fund programs for the homeless, funneling money to NGOs with little oversight. While helping the homeless is a worthy cause, it cannot come at the expense of protecting lives and property from catastrophic fires. Leadership must put safety and well-being over political agendas, and that’s not happening in Los Angeles.

The same misplaced priorities extend to environmental policies. Progressive leaders have blocked sensible forest management practices, prioritizing dead trees over living creatures. They reject controlled burns, forest thinning, and other commonsense measures, bowing to the demands of activists rather than considering real solutions that would protect those they govern.

California’s wildfire crisis is, in many ways, a man-made disaster. Yes, factors like Southern California’s dry climate, strong Santa Ana winds, and little rain play a role, but the biggest contributing factor is poor land management.

The forests are choked with dry brush, dead trees, and vegetation that turn every spark into a potential inferno. The crisis could have been mitigated — if only the state had made forest management and fire prevention a higher priority.

Finland and Sweden, for example, understand the importance of maintaining healthy forests. These countries have perfected the art of clearing underbrush and thinning trees sustainably, turning potential fire fuel into biomass energy. This approach not only reduces the risk of wildfires, but it also creates jobs, boosts the economy, and improves the ecosystem. And yet, California — ironically, in the name of environmentalism — continues to ignore these solutions that would protect both the environment and its residents.

We need to stop pretending that something as devastating as the Palisades and Eaton fires are just “part of life” and hold leaders accountable.

Insurance rules put California residents at risk

California faces another major and often overlooked liability when it comes to natural disasters: insurance.

California’s ongoing disasters make the state an uninsurable risk. Insurance companies are pulling out because the odds of widespread devastation are just too high. This creates a vicious cycle: With private insurers gone, the government steps in to subsidize high-risk areas. This enables people to rebuild in fire-prone zones, perpetuating the destruction. The solution isn’t more government intervention; it’s better decision-making.

This doesn’t mean abandoning people to their fate, but we must address the root of the problem: California’s inadequate disaster preparedness and poor land management. If the state continues to resist commonsense solutions like forest thinning, controlled burns, and better zoning laws, no amount of insurance or government assistance will ever be enough to mitigate the losses. The cycle will repeat until the costs — financial and human — become unbearable. It’s time to stop pretending the risk isn’t real and start making decisions that reflect the reality of California’s landscape.

What’s the solution? California’s government needs to put its people over harmful political agendas that put its residents at risk. Start by managing your forests. Implement controlled burns, remove dead trees, and clear underbrush.

But how you vote matters. California’s progressive policies have focused on political correctness and ideology instead of practical, lifesaving solutions. Until voters hold leaders accountable, the cycle of destruction will persist.

Editor's Note: This article was originally published on TheBlaze.com.

Crazy enough to be true? The connection between the Cybertruck bomber and cryptic drones

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Not knowing — and not being told — fuels distrust and speculation.

A chilling story has emerged: A whistleblower, claiming to possess knowledge of advanced military technologies and covert operations, took his own life in a shocking explosion outside the Trump Hotel in Las Vegas. He left behind a manifesto filled with claims so extraordinary they sound like science fiction. Yet if even a fraction of them prove true, the implications are staggering and demand immediate attention.

This whistleblower alleges that the United States and China developed “gravitic propulsion systems,” technologies that manipulate gravity itself to enable silent, undetectable flight at unimaginable speeds. According to his claims, these systems are not theoretical — they are operational, deployed both in the United States and China. If true, this would render conventional defense systems obsolete, fundamentally altering the global balance of power.

America’s founders warned us about unchecked government power. Today, their warnings feel more relevant than ever.

Imagine aircraft that defy radar, heat signatures, and missile defense systems. They carry massive payloads, conduct surveillance, and operate without a sound. If such technologies exist, they pose a national security threat unlike any we’ve faced.

But why haven’t we been told? If these claims are false, they must be debunked transparently. If true, the public has a right to know how such technologies are being used and safeguarded.

The whistleblower’s manifesto goes farther, claiming that with this technology, the United States and China developed and deployed the infamous drones that were seen across the United States starting late last year. He alleged that China launched them from submarines along the U.S. East Coast, calling them “the most dangerous threat to national security” because of their stealth, ability to evade detection, and unlimited payload capacity. He ties this advanced technology to other surveillance systems, creating a network so advanced it makes our current intelligence capabilities look primitive.

These claims may sound far-fetched, but they highlight a deeper issue: the cost of government secrecy. Not knowing — and not being told — fuels distrust and speculation. Without transparency, these incidents dangerously erode public confidence in our leaders and institutions.

The cost of secrecy

Beyond technology, the manifesto also alleges moral failures, including war crimes and deliberate cover-ups during U.S. airstrikes in Afghanistan. In one particularly harrowing claim, the whistleblower describes attacks in Afghanistan’s Nimroz Province in 2019. He alleges that 125 buildings were targeted, with 65 struck, resulting in hundreds of civilian deaths in a single day. Even after civilians were spotted, he claims, the strikes continued knowingly and deliberately.

The United Nations investigated similar incidents and confirmed civilian casualties during these operations. However, the whistleblower’s accusations go farther, implicating high-ranking officials, the Department of Defense, the Drug Enforcement Administration, the Central Intelligence Agency, and even top military generals in a broader pattern of deceit, eroding the moral integrity of our military and government.

Whether these specific claims hold up, they underscore a larger issue: Secrecy breeds corruption. When people in power hide their actions and evade accountability, they break trust — and everyone pays the price, not just those at the top but also the citizens and soldiers they serve.

Transparency is an imperative

America’s founders warned us about unchecked government power. Today, their warnings feel more relevant than ever. From the COVID-19 pandemic to the Capitol riot on January 6 to the potential misuse of advanced technologies, the American people have been kept in the dark for too long.

Sunlight is the best disinfectant, and sunlight is coming. Transparency must become our rallying cry. As we look to the future, we must demand accountability — not just from those we oppose politically but from all leaders entrusted with power. This isn’t about partisanship; it’s about preserving our nation from self-destruction.

As we enter a new chapter in our nation’s history, the stakes couldn’t be higher. Whether it’s uncovering the truth about advanced technology, holding perpetrators of corruption accountable, or seeking justice for war crimes, we must act. This isn’t just a call to action — it’s a moral imperative.

Our strength lies in our unity and our resolve. The powerful fear an informed and vocal citizenry. Let’s prove them right. By demanding transparency and accountability, we can restore trust and ensure that the government serves the people — not the other way around.

Editor's Note: This article was originally published on TheBlaze.com.