Ocasio-Cortez's rise reveals rampant economic illiteracy in US
Updated: Nov 16, 2018
Every educated person should understand basic supply and demand. If someone is in the business of making laws that the rest of us must adhere to, they should ABSOLUTELY have a basic understanding of supply and demand. Sadly, economic ignorance is widespread among both the public and lawmakers. Ms. Ocasio-Cortez, "the girl from hedge fund country" just seems particularly ignorant.
Many people now think that spending and debt have no cost. That the federal government is free to spend whatever it wants because there are no consequences to running up debt. This is incorrect. For every action there is an equal and opposite reaction. Debt and spending have consequences. And as interest rates creep up that debt is only going to get more and more expensive. This in turn puts pressure on other parts of the budget. Over time this pressure could become critical and many of the programs the "socialists" want will become completely untenable.
But they don't understand this. So if given the chance people like Ms. Ocasio-Cortez will take the rest of us right off their utopian cliff if we let them.
(From The Hill)
That’s not how the global economy works. The free market is the world's largest and most successful poverty alleviation program. Market investment and entrepreneurship far outperform government investment, and the resulting surges in economic activity benefits everyone, particularly the poorest.
There’s also an inadvertently tragic ramification of today’s trendy Democratic Socialist ideas. If you actually added $40 trillion to the U.S. national debt, as Ocasio-Cortez has proposed, it would be younger people and future generations that have to bear the astronomical tax burden when the bills come due.
The proliferation of these ill-conceived economic ideas over the past few years speaks to the lack of economic literacy in our education system.