Gerald Friedman, an economics professor at the University of Massachusetts Amherst, prepared an exclusive analysis to CNN Money on Bernie Sanders’ economic program. According to Friedman, the median income for Americans would rise by more than $22,000 and 26 million new jobs would be created.
Although Friedman has worked with Sanders in the past (without compensation), the analysis was not commissioned by the Sanders campaign.
According to the analysis, which also includes the approximate cost of Sanders’ Medicare-For-All plan estimated at $13.8 trillion over 10 years, the median household income would be $82,200 by 2026. The Congressional Budget Office previously estimated the median income by 2026 to be $59,300.
The analysis also shows that poverty would sink to a record low of 6%, the U.S. economy would grow by over 5% a year, the unemployment rate would sink to 38%, and our deficit with turn into a surplus by Sanders’ second term.
Sanders’ plan includes raising the minimum wage, shifting income from the rich to the working class, increasing spending on infrastructure, youth employment, and Social Security benefits, making college free, and expanding health care and family leave is said to increase productivity and economic activity.
Some economists disagree with the analysis, calling it overly optimistic. Specifically, they say that Friedman is miscalculating how much Medicare-For-All would cost by $3 trillion, though Friedman makes a case for this in his analysis by saying that $3 trillion would be saved by eliminating tax breaks for health insurance premiums.
Friedman maintains that Sander’s plan is extremely stimulative and different than other candidate’s plans due it calling for money being poured into the economy rather than just cutting taxes.