Crackdown on Indian Credit Rating Firms
April 3, 2025
Credit rating industries are part of a closely held industry. For years, this has worked in favor of these agencies since they have to face less competition. However, these agencies are also the first ones to get blamed after every financial crisis. It is a known fact that no one can really predict a market…
The American politics is heating up in anticipation of the 2020 Presidential Election. Democrats are unveiling what appears to be a populist socialistic agenda. Amongst the Democrats, Bernie Sanders, in particular, is hell-bent on enacting policies which can be considered to be socialist. Bernie Sanders has found an ally in Alexandria Ocasio-Cortez as she too…
What is the American Dream and why was it so Good while it Lasted? For a long time, the United States was seen as the Land of Milk and Honey where anyone and everyone with some talent, lots of hard work, sheer grit, and dogged determination could make a career for themselves and raise a…
In the year 2019 the concept of “The Green New Deal” was introduced in American politics. The idea was floated by Alexandria Ocasia-Cortez and it became very popular amongst all Democrats. Almost all the Democrats who plan to run for President have come out in support of the Green New Deal. The idea has also found a lot of takers amongst left-leaning lawmakers and individuals.
At the same time, the idea of the “Green New Deal “has come under a lot of fire from Republicans who are equating it with socialism. In this article, we will have a closer look at the concept of the Green New Deal as well the economic impact it is likely to have.
The New Deal was a historic program which was undertaken by President Franklin Roosevelt after the Great Depression. Under the new deal, the government of America spent a lot of money on infrastructure projects and other such reforms in order to prop up the economy.
The Green New Deal seeks to emulate the changes that were brought about by the New Deal. Hence, the Green New Deal is also a government-sponsored program. It also seeks to make drastic changes to the infrastructure of America. However, while doing so, the Democrats want to focus on renewable energy and resource efficiency.
Hence, the Green New Deal is a sort of amalgamation of two ideas. It aims to solve the problem of climate change and in the process prop up the failing American economy.
One of the problems with the proposed Green New Deal is that it plans to achieve too much in too little time. This is the reason why it appears more like a wish-list and less like a plan. Some of the most prominent objectives of the green new deal are as follows:
The Green New Deal wants to accomplish all the objectives mentioned above and many more within the span of a decade!
If one reads all the points mentioned above, it becomes obvious that the Green New Deal sounds too good to be true. Obviously, there are a lot of problems with this deal. Some of them have been listed below.
The maximum wastage of funds happens when government agencies are entrusted with the task of executing a plan. This means that if the Green New Deal were to really come into effect, the government would have to borrow a lot of money in order to make it a success. This would end up creating a lot of problems for the American Treasury which is already burdened by crushing national debt. Also, the plan to raise a lot of debt is not in sync with the Federal Reserve”s plan to raise interest rates. If both the Green New Deal and the rate hikes happen simultaneously, the government will find it difficult to service its debt.
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