J.P. Morgan Slams ‘Green New Deal,’ AOC Fires Back

401k, retirement, Green New Deal, Alexandria Ocasio-Cortez
A skirmish in the war of words.

In a direct, no-nonsense assessment of the near-term energy sector outlook, Michael Cembalest of J.P. Morgan Asset Management sharply criticized the Green New Deal currently proposed in Congress.

The bill, jointly introduced by Rep. Alexandria Ocasio-Cortez, D-New York, and Sen. Ed Markey, D-Massachusetts, is a nonbinding resolution that commits the United States to massive investments in renewable energy, among other ambitious goals.

While praised by proponents as a “conversation starter,” critics slammed its estimated costs and lack of specifics.

Put Cembalest, chairman of market and investment strategy for the firm, in the latter camp.

His report “Mountains and Molehills: Achievements and Distractions on the Road to Decarbonization,” noted that the Green New Deal mandates zero net emissions for the U.S. by 2030 for the entire energy sector (not just from electricity generation) without the aid of nuclear power.

“This sets a goal that cannot be achieved,” he bluntly stated. “At best, the Green New Deal is a slogan to galvanize support for change; at worst, it’s a sign of how little work its proponents have done.”

“We agree with our science advisor Vaclav Smil that Green New Deal goals are not in the realm of the possible, that they do not appear grounded in existing scholarship on energy de-carbonization, and that they are not a useful foundation for a serious policy discussion,” Cembalest added.

While he conceded he sees some critics as intellectually dishonest on climate issues, “being intellectually dishonest about the viability of the Green New Deal does no one any favors either.”

Cembalest had the backing of his boss, JPMorgan Chase CEO Jamie Dimon, who told CNN, “I don’t spend much time worrying about things that I can’t effectuate. Can you focus on climate change in an intelligent way that doesn’t damage the economy? Yes, you can. It’s called CO2 emission taxes, or trading, there’s a couple of ways to do it. So, you better do it wisely because you could hurt the economy, which hurts everybody.”

AOC Unhappy

Ocasio-Cortez (unsurprisingly) took to Twitter to respond, first with a SpongeBob SquarePants reference to Green New Deal critics in general:

 

 

 

 

 

 And then to Dimon directly:

 

 

 

 

 

 

 

 

John Sullivan
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With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.

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