By: Trevor Loudon | New Zeal
A major left economist has just completed an analysis of what the budget might look like under a President Sanders and gives it the thumbs up when it comes to jobs, growth, and equality.
People’s World obtained a copy of the new report which is just being released titled, “What would Sanders do? Estimating the impact of Sanders programs.” It is the work of economics professor Gerald Friedman and compiles two dozen of the major proposals released by the Sanders campaign…. It is the first complete overview of what could be expected if the Sanders plan was implemented in full.
Needless to say Senator Sanders’ program of ever increasing spending and taxation will lead to bounteous milk and honey for all.
With an ambitious $14.5 trillion dollars of investments, the agenda set out by Sanders is fully paid for with more than $16 trillion dollars of anticipated revenues. Through a combination of a 1 percent wealth tax on fortunes valued at more than $21 million, a financial transactions tax, lifting the cap on the Social Security payroll tax and extending it to dividend and capital gains income, a 4.75 percent employer payroll tax, as well as a host of other measures, Sanders’ plan would not only boost growth but also eliminate the budget deficit.
Among the big ticket spending items are a $1 trillion infrastructure plan – the Rebuild America Act – a $750 billion College for All program, an across-the-board Social Security increase totalling almost half a trillion, and Medicare for All – a $10 trillion rollout of healthcare for every American.
Putting paid to GOP claims that only tax cuts for the wealthy can deliver growth, Friedman demonstrates that Sanders’ massive public investments would act as a giant stimulus on the economy. Government output is predicted to spur businesses to hire and encourage workers to spend more, thus generating the need for even more hires – sparking a virtuous circle of growth….
By 2026, the expected unemployment rate would be 4.0 percent, rather than the currently forecast 5.4%. With more than 23 million new jobs, in economic terms this means that full employment would be reached by the end of Sanders’ second term.
It represents more than a doubling in real per capita income. Not only will more Americans be working, they will also be making more money.
The Marxists do realize that this Nirvana could be sabotaged by economic reality… but they’re going for it anyway.
As Friedman makes clear, “The Sanders program would, of course, face political obstacles to enactment.” Economic obstacles could also abound “if the Federal Reserve moves aggressively to abort the [Sanders] economic expansion by reducing monetary growth and raising interest rates.” There’s also the possibility of a strike by capital in which raising wages leads businesses to refuse new investment or to make further hires.
These are all the perils of attempting to implement an alternative to the current finance-dominated system of casino capitalism. In the words of Friedman, “In the end, success or failure rests on the strength of the political forces behind a Sanders Administration.” Acknowledging the hurdles doesn’t mean it isn’t worth a try though.
So if this plan fails, which it inevitably will… the socialists already have their scapegoat ready.
The DSA Marxists know Sanders’ plan is utter garbage. They know Sanders’ plan is merely to achieve power, not to actually help Americans grow richer.
Our goal as socialists is to abolish private ownership of the means of production.
So apparently does their comrade Bernie Sanders. How is higher taxation and increased burdens on business going to double your income American voters?
The answer is that it won’t. And it’s not intended to. This plan is to get your vote…. to get socialists into power… and then destroy what’s left of your liberty.
That’s what socialists do folks. And that’s what Bernie Sanders and Democratic Socialists of America intend to do to you.