Corporate America—New Handmaid Of The State

The blithering economic illiteracy of the mainstream financial press is a wonder to behold. For instance, this morning the Wall Street Journal’s leading Fed fanboy, Greg Ip, pronounced “no sweat” when it comes to the calamity of investing $4 trillion annually to fund the transition to green energy:

Every year, the global financial system channels trillions of dollars from people who have capital to people who need it without breaking a sweat. Doing the same to achieve net zero carbon emissions by 2050 is well within its means. It just needs something to invest in.

Well, yes, and governments could also command the building of $4 trillion of pyramids per year to be paid for by rolling the capital cost into the rate base of what will become an all-electrified green economy. Consumer and business rate payers would take it on the chin, of course, but at least the lunk-head who runs Bank America would be proven correct,

As Bank of America Chief Executive Brian Moynihan says: “If there’s a revenue stream, then the funding is infinite.”

“Government doesn’t have the money, it has to come from the private sector,” Mr. Moynihan says in an interview. “The role of government is to create revenue streams or demand signals or even mandates that open up the markets so that the money comes in.”

No, creating revenue streams, demand signals and mandates is not the role of government at all. That’s what they did in the old Soviet Union, and its obvious how well that worked out.



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