Dan Bongino: Answering the question of how she’ll fund the cradle-to-grave welfare state programs she desires for America had been a question that Alexandria Ocasio Cortez shied away from on the campaign trail. As Congresswomen, she’s at least conjured up one idea – taxing incomes above $10 million at 70% per year – though even taxing all incomes above $1 million at 100% wouldn’t pay for a quarter of what she wants to fund.
So what is a socialist to do? Simple – just ignore that debt has consequences.
In an interview with Business Insider, Ocasio endorsed Modern Monetary Theory (MMT), an economic theory that deficits don’t matter since money can also be printed to pay off that debt (hello Zimbabwe and Venezuela). Because the government can print at will, not only do deficits not matter according to MTT, the only purpose of maintaining a level of taxation relative to government spending is simply to regulate inflation and unemployment. As quoted in Business Insider:
She [Cortez] said she was open to Modern Monetary Theory, a burgeoning theory among some economists positing that the federal debt is not an economic restraint for the US. She said the idea, which holds that the government doesn’t need to balance the budget and that budget surpluses actually hurt the economy, “absolutely” needed to be “a larger part of our conversation.”
Ironically, I agree. With our national debt nearing $22 trillion, it absolutely needs to be a larger part of the national conversation, just for the opposite reasons that Ms. Cortez thinks. As you would expect, deficits (and debt) do indeed matter. more here