“When you dare to do big things, big results should be expected. The Sanders program is big, and when you run it through a standard model, you get a big result.”
– James K. Galbraith
Democratic presidential candidate Bernie Sanders says he wants the American people to join him and “fight for a progressive economic agenda that creates jobs, raises wages, protects the environment and provides health care for all.” His website outlines a number of proposals toward this end, including increasing taxation of corporations and the wealthy and using the money to repair the country’s infrastructure, extending public education four years to cover college, extending Medicare to everyone, expanding Social Security and addressing climate change.
Gerald Friedman, a respected economist (and Clinton supporter by the way) took a look at Sanders’ proposals, ran the revenue and spending numbers through a standard economic model, and suggested that the very high level of spending would provide a “significant stimulus to an economy that continues to underperform, with national income and employment at levels well below capacity.” This stimulus could lead to several positive economic outcomes, including increasing gross domestic product growth to 5.3 percent a year, cutting unemployment to 3.8 percent and increasing wages by 2.5 percent per year. This, combining with the revenue proposals, would bring a budget surplus. Friedman wrote: