Home
/
RELIGION & LIBERTY ONLINE
/
Liberal Economists Blast the ‘Fantastical Claims’ of Bernie Sanders’ Economic Policies
Liberal Economists Blast the ‘Fantastical Claims’ of Bernie Sanders’ Economic Policies
Dec 22, 2025 12:29 PM

The headline at CNN was surprising: “Under Sanders, e and jobs would soar, economist says”; the opening paragraph of their article even more so:

Median e would soar by more than $22,000. Nearly 26 million jobs would be created. The unemployment rate would fall to 3.8%.

Those are just a few of the things that would happen if Bernie Sanders became president and his ambitious economic program were put into effect, according to an analysis given exclusively to CNNMoney. The prehensive look at the impact of all of Sanders’ spending and tax proposals on the economy was done by Gerald Friedman, a University of Massachusetts Amherst economics professor.

Like Sanders, Friedman believes in democratic socialism. He also believes an unlikely series of events could happen: Sanders es president (very unlikely), President Sanders is able to push his plan through a GOP-controlled Congress (politically impossible), and then median household e magically rises to $82,200 by 2026 (the current projection by the Congressional Budget Office is that it’ll be around $59,300).

You would expect Republicans and conservatives to mock this type of wishful thinking. But some of the strongest criticism e from a seemingly unlikely source: liberal economists who once chaired the President’sCouncil of Economic Advisers.

Alan Krueger of Princeton University, Austan Goolsbee of the University of Chicago Booth School, and Christina Romer of the University of California at Berkeley all chaired President Obama’s Council of Economic Advisers at different times during his administration, while Laura D’Andrea Tyson of the University of California’s Haas School of Business was the chair under President Clinton.The four published a rather scathing open letter to both Sanders and Friedman. Here is the full text of the letter:

Dear Senator Sanders and Professor Gerald Friedman,

We are former Chairs of the Council of Economic Advisers for Presidents Barack Obama and Bill Clinton. For many years, we have worked to make the Democratic Party the party of evidence-based economic policy. When Republicans have proposed large tax cuts for the wealthy and asserted that those tax cuts would pay for themselves, for example, we have shown that the economic facts do not support these fantastical claims. We have applied the same rigor to proposals by Democrats, and worked to ensure that forecasts of the effects of proposed economic policies, from investment in infrastructure, to education and training, to health care reforms, are grounded in economic evidence. Largely as a result of efforts like these, the Democratic party has rightfully earned a reputation for responsibly estimating the effects of economic policies.

We are concerned to see the Sanders campaign citing extreme claims by Gerald Friedman about the effect of Senator Sanders’s economic plan—claims that cannot be supported by the economic evidence. Friedman asserts that your plan will have huge beneficial impacts on growth rates, e and employment that exceed even the most grandiose predictions by Republicans about the impact of their tax cut proposals.

As much as we wish it were so, no credible economic research supports economic impacts of these magnitudes. Making such promises runs against our party’s best traditions of evidence-based policy making and undermines our reputation as the party of responsible arithmetic. These claims undermine the credibility of the progressive economic agenda and make it that much more difficult to challenge the unrealistic claims made by Republican candidates.

For now let’s set aside the partisan sniping e back to that in a moment) and any questions about their motives (sure, they most likely all support Hillary Clinton for president) and highlight something we can all agree on: Government decision making should be based on “evidence-based economic policy” and that partisans should call out their own side for supporting policy that is contrary to the evidence.

Most reasonable people will nod their head and agree that this is a reasonable standard. Yet it is a standard that is rarely used by either liberals or conservatives. Too often both sides allow the public to remain confused about the actual evidence in order to achieve a political objective.

Take, for example, the Democrats support of minimum wage laws. The clearest evidence we have is that it disproportionality affect African Americans. That’s not really disputable.There is also almost a universal agreement that it won’t do much at all to fix the problem of poverty. But economists do disagree about the effects of small increases in minimum wages (less than 20 percent), and whether it mostly helps or mostly hurts the working poor.

If it were truly the case that the Democratic Party is “the party of evidence-based economic policy,” then we would have Democratic politicians admitting that while minimum wage increases harm African Americans and don’t do much to fix poverty, we should nevertheless support small increases.

Instead, the party is fully behind an increase from $7.25 an hour to $15 an hour — a policy position that absolutely cannot be justified by an appeal to the evidence. So why do liberal economists mostly remain quiet about the damaging effect the increase would have? Because (a) the policy is popular with the party’s voters, and (b) there is almost no chance the voters will realize that policy is economically destructive.

Even those who are affected the most — low-skilled poor workers — aren’t going to connect the dots and recognize the reason they can’t find jobs is because they have been priced out of the market because of a government-mandated wage floor increase. Unless liberal economists tell them the truth (assuming they won’t listen to conservatives) they will remain blissfully ignorant about the real effect of the $15 minimum wage.

Similarly, conservatives have taken an evidence-based approach to taxes and skewed it for political reasons. Take, for instance, the Laffer curve, a representation of the relationship between rates of taxation and the resulting levels of government revenue. The concept, popularized by economist Arthur Laffer, seem rather obvious: no tax revenue will be raised at the extreme tax rates of 0 percent and 100 percent and that there must be at least one rate which maximizes government taxation revenue. Theoretically, that rate could be anywhere on the curve, but it’s assumed that in the U.S. the rate is somewhere above 50 percent (and maybe even above 70 to 90 percent).

Another obvious implication of the Laffer curve is that if the rate is to the right of the optimal percentage, lowering the rate will increase government revenue. Yet somehow this conclusion was transformed and dumbed-down into the idea that “lowering taxes raises government revenues.” Even now, when the marginal tax rates are below 40 percent (a rate far lower than most respectable Laffer curve enthusiasts would say is the peak rate), some conservatives still falsely believe that if the government would simply cut tax rates even more, it’d reduce the deficit.

Part of the reason this misguided belief persists is because some conservative economists (and economically minded conservatives) support lowering taxes for other reasons, and this mistaken idea, while wrong, is politically useful in achieving that goal.

This type of politically partisan expediency is something all Christians should reject. Whether we are on the left or right, Christians should be strong partisans for the truth. We may draw different conclusions about economic evidence or even disagree about what counts as evidence. But we should not make unjustifiable claims about what the evidence is or falsely present the implications simply because it increases the chances of our side winning elections.

Economic policy affects people’s lives, which is why we should be careful to have solid reasons for the policies we support. If we truly love our neighbors, we won’t support economic policies we know have no relation to reality.

Addendum: John Cochrane agrees the heart of the letter is “worthy, mendable” but calls out the unnecessary partisanship of the CEA chairs:

Oh. I thought you were simply doing what all good economists, do, all good CEA chairs do, and you were working to make evidence-based policy a routine feature of all government policy under all administrations. I thought you were working for the benefit of the country, not just the Democratic party.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Free Tesla from Franchise Laws and Subsidies
“The Tesla Model S is a drop-dead gorgeous electric automobile that can go from 0-60 mph in 4.2 seconds and carries a sticker price of $80,000 at the high end,” says Sarah Stanley in this week’s Acton Commentary. “Tesla is also at the center of a debate on cronyism, consumer choice, and innovation” On October 21, Gov. Rick Snyder of Michigan signed Enrolled House Bill 5606 into law. Some have rightly nicknamed this the “anti-Tesla bill.” While direct sales from...
The Power Of Youth, But Let’s Not Get Carried Away
The United Nations has just published its State of the World Population Report 2014, “1.8 Billion Strong: Adolescents, Youth and the Transformation of the Future.” I always enjoy a good read from the United Nations, and this does not fail to provide much fodder for discussion. The U.N. is very pro-young people. Youth are capable of great things. Our world needs their intelligence, their spirit, their intelligence, their innovation. The report is full of photos of beautiful and vibrant young...
Moral Capital and the Rule of Law
“If we want to be coherent when addressing poverty,” writes Acton Research Director Samuel Gregg at Public Discourse, “our concerns can’t be rooted in emotivist or relativistic accounts of who human beings are. They must be founded on recognition of each person’s freedom, rationality, and dignity.” In social sciences such as economics, positivism’s ongoing influence encourages the tendency to see values as irrelevant, hopelessly subjective, and hard to measure (which, for some people, means they don’t exist). Thus, making the...
A GMO Thanksgiving
Let’s face it – if not for genetically modified organisms, many of us wouldn’t be celebrating Thanksgiving in the traditional sense. Instead of turkey, cranberries and sweet potatoes, we’d be reduced to something far less appealing such as, say, Beans-and-Franksgiving. Unfortunately, some shareholder activists – including those affiliated with As You Sow – work long hours to ensure GMOs are eliminated as a dinner option. According to the AYS website: The genetic modification or engineering of plants and animals has...
The Thanksgiving Proclamation of George Washington
In October 3, 1789 in New York City, President George Washington proclaimed Thursday the 26th of November 1789 a day of “public thanksgiving and prayer” devoted to “the service of that great and glorious Being who is the beneficent Author of all the good that was, that is, or that will be.” Here is the full text of his Thanksgiving proclamation: By the President of the United States of America, a Proclamation. Whereas it is the duty of all Nations...
Unemployed at Thanksgiving
For many people the holiday season is their favorite time of the year. But for the 9 million Americans who are currently unemployed, this can be an especially difficult time. The feeling of hopelessness and despair that e with looking for work often increase with the approach of Thanksgiving and Christmas. Lauren L. Moy was recently unemployed during Thanksgiving and recallsthefeelings of awkwardness when meeting with friends and relatives over the holidays. Moyoffers mendations for how to deal with unemployment...
Radio Free Acton: Rockin’ The Wall with Larry Schweikart
Larry Schweikart This edition of Radio Free Acton features an interview with Larry Schweikart – drummer, history professor, and producer of the documentary “Rockin’ The Wall” – on the power of music and the influence of rock and roll in munism in the Soviet empire.When we think about the fall of the Berlin Wall, it’s only natural that names like Reagan, Thatcher, and Pope John Paul e to mind, but there were otherelements involved in the battle munism that also...
Black Friday: A day of hyper generosity?
For many, Black Friday epitomizes everything nasty American hyper-consumerism. Stores everywhere are plagued with overly aggressive shoppers, each stuffed to the brim with carb-laden Thanksgiving chow and yet ever-more hungry for the next delicious deal. It’s all rather disgusting, no? Quite the contrary, argues Chris Horst over at OnFaith. “Black Friday may have its warts,but let’s not forget the reason for the Black Friday season,” he writes. “The DNA of Black Friday is generosity.” Wielding a fine mix of basic...
William Allen On Freedom, Liberty
Tuesday, December 2 marks the final Acton Lecture Series for 2014. Acton es William Allen, Emeritus Professor of Political Philosophy in the Department of Political Science and Emeritus Dean, James Madison College, at Michigan State University. Allen will be speaking on “American National Character and the Future of Liberty,” beginning at 11:30 at 98 E. Fulton, Grand Rapids, Michigan. You can register here. Allen spoke (along with Samuel Gregg, Acton’s Director of Research) in 2008 on “What Is Freedom?” as...
Samuel Gregg: Economic Freedom And Religious Freedom Are Mutually Reinforcing
On The Daily Caller, Acton Research Director Samuel Gregg looks at the connection between economic liberty and religious freedom which, he observes, “has not been so obvious; or at least it wasn’t until cases such as Hobby Lobby’s started making their way through the American court system.” Also not so obvious is how the ever expanding welfare state in many countries — and the growing dependence of some religious charities on state funding — have had a negative impact on...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved