AOC Flubs Basic Economics…. Again

AOC Flubs Basic Economics…. Again

Representative Alexandria Ocasio-Cortez boasts a Bachelor’s degree in economics from Boston University – but she must’ve fallen asleep during one of her lectures in macro 101.

Following the Federal Reserve announcing that they’ll be stepping in to provide $1.5 trillion in liquidity to the markets yesterday, AOC, having no idea what any of that means, seized upon the news as proof that the money could’ve instead been spent on cancelling everyone’s student loans.

The obvious problem with her logic is that the Fed isn’t handing over $1.5 trillion to banks, they’re effectively offering $1.5 trillion in extremely-cheap short-term loans so that banks can meet their short term financial obligations without disruption. Nothing is being spent.

In other words, AOC is effectively proposing eliminating student loans by giving students another loan. A fascinating strategy for sure.

Whether or not she actually knows better or is just trying to exploit a fan-base she knows for sure doesn’t is impossible to know – but sadly she wasn’t the only notable individual pushing this bogus narrative. Countless others misinterpreted the Fed’s move as proof that Zimbabwe economics is viable.

Andrew Yang, who ran for president under the slogan “Make America Think Harder,” used the Fed’s policy as proof America could fund his $1,000 a month cash for life giveaway (no lottery ticket required!).

Meanwhile, the grassroots “People for Bernie” group used their misunderstanding of economics to mock people who are concerned about how to fund their chosen candidate’s $50+ trillion  agenda.

As did the Cuba sympathizer they rally behind:

The Clinton administration’s former Labor Secretary also chimed in to confirm over two decades later that he wasn’t qualified for the job:

And the rest of the internet left wasn’t much better:

This is what we’re up against folks.

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