First comprehensive, independent analysis shows that incomes would rise, job markets would grow, and prosperity would be more widely shared if Sanders’ proposals were put into practice.
With so many bold proposals, what might a Bernie Sanders presidency do to the national economy?
It turns out, great things.
In fact, according to the economist who performed the first independent, comprehensive analysis of the candidate’s economic agenda, a Sanders win could usher in a modern-day “New Deal,” under which Americans would see incomes rise, job markets grow, and an overall budget surplus by his second term.
“Like the New Deal of the 1930s, Senator Sanders’ program is designed to do more than merely increase economic activity,” said University of Massachusetts Amherst economics professor Gerald Friedman, who conducted the study, which was given exclusively to CNNMoney.
And keeping in line with Sanders’ promises to work towards a more “moral” distribution of wealth and create an economy for the 99 percent, Friedman added that the candidate’s plan will “promote a more just prosperity, broadly based with a narrowing of economy inequality.”
Assuming the Vermont senator was able to push his ambitious spending and tax proposals through Congress, the analysis found that median household income would reach $82,200 by 2026, which CNN notes is “far higher than the $59,300 projected by the Congressional Budget Office.”
What’s more, the analysis found that “poverty would plummet to a record low 6%, as opposed to the CBO’s forecast of 13.9%. The U.S. economy would grow by 5.3% per year, instead of 2.1%, and the nation’s $1.3 trillion deficit would turn into a large surplus by Sanders’ second term.”
Sanders has called to raise the minimum wage and shift wealth from the rich to middle- and working-class people through tax hikes on the wealthiest individuals and corporations. Further, his agenda aims to stimulate growth by pouring $14.5 trillion into the economy through spending on infrastructure and youth employment, increasing Social Security benefits, making college free, and expanding health care and family leave.
Friedman concludes that these policies would “be more stimulative” than his competitors’ proposals, many of which included large tax cuts.
Though not commissioned by his campaign, Sanders’ policy director reportedly called it “outstanding work.”
This post first appeared in Common Dreams.