Socialist ideas that were always only on the fringes of the Democratic party seem to have now become mainstream ideas. There are now a growing number of Democrats that openly call themselves “Democratic Socialists”. The term was made popular in 2016 when Bernie Sanders ran for President. In a stunning Gallup Poll last summer, polls showed that most Democrats view socialism more favorably than they do capitalism.
One of the two Democratic Socialists to join Sanders in Congress this year is Rashida Tlaib, D-Michigan and a member of the DSA or Democratic Socialists of America. This growing socialist wing of the Democratic Party is pushing for big government expansion of programs and policies. They are advocating “Medicare-for-all”, guaranteed job programs and what has now been dubbed “The Green New Deal” which is a massive overhaul of the existing energy sector. This will make FDR’s New Deal look like peanuts.
The huge plans for these major government-backed programs or “The Plan”, they say will be financed by the federal government by using the Federal Reserve, a new public bank system and public venture funds. With these in place, they hope in the end, that it will reduce taxpayer burden and allow for more investment.
How to pay for all this? One explanation given in an FAQ follow-up said,”: The same way we paid for WWII and many other wars. The Federal Reserve can extend credit to power these projects and investments. New public banks can be created ( as in WWII) to extend credit and a combination of various taxation tools ( including taxes on carbon and other emissions and progressive wealth taxes) can be employed.”
The New York Times, Paul Krugman said it wasn’t clear what The Green New Deal meant, “ which is what makes it a good slogan.” he said.