The “Green New Deal” Is a Fiscal Fantasy

Congresswoman Alexandria Ocasio-Cortez—AOC, as she’s often now called—claims that her so-called Green New Deal will help end global warming and cure several societal ills. The effort, she concedes, will be expensive, but the dangers we face from climate change and other social problems warrant national mobilization, on the level of the Second World War. Paying for the plan, she suggested, might involve a dramatic hike in the top marginal income-tax rate—up to 70 percent. That figure shocked some, but not Nobel Prize-winning economist and New York Times columnist Paul Krugman, who considers it “reasonable.” Details remain vague, but some context on the AOC plan, and on the sleight of hand that Krugman uses to support it, is revealing.