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
Apr 22, 2026 1:50 AM

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
Freedom Drove a Car: How Cars Helped Fight Racial Segregation
If you want to improve the material conditions of the poor and working classes, what is the one economic metric you should consider most important? For progressives the answer is e inequality, since a wide disparity between the es of the rich and poor is considered by them to be an obvious sign of injustice and a justification for using the force of the government to redistribute wealth. But for conservatives, the answer is upward economic mobility, the ability of...
A Big Government Rescue Plan For Women
We’re scolded for blaming the poor, judging their lifestyle choices, says Elise Hilton in this week’s Acton Commentary. But what good can we do if we refuse to look at systemic issues? We are told that we are guilty of blaming the poor, judging their lifestyle choices. But what good can we do if we refuse to look at systemic issues that indeed cause poverty: irresponsible sexual choices, dropping out of school, a revolving door of men in women’s and...
The Netherlands Try To Cure ‘Dutch Disease’: Welfare State
wants to talk about disease and dysfunction. It’s not a medical condition, though; it’s an economic one. Far too few governments rein in their countries’ bloated welfare states before disaster strikes. As a result, some citizens eventually suffer the economic equivalent of a heart attack: wrenching declines in living standards as they are victimized by unsustainable programs’ endgame. Greece and the city of Detroit are only the most recent grim examples. The Dutch, Boskin says, seem to be making a...
Straight Talk About The Wage Gap: Women Are Not Victims
Ladies: are you upset that women make only 77 cents on the dollar pared to men? Are you sure that’s even accurate? It’s time for some straight talk about the so-called “wage gap.” Video courtesy of the Independent Women’s Forum. ...
Is There a Moral Basis for the Free Market?
The morality of the market, important as it is in a free society, says James Stoner, is not the only kind of morality that matters mon life: So is there a moral basis for the free market? Sure, but it is part of plex moral environment that rightly limits market freedom even as it supports it. The morality of the market, important as it is in a free society, should not be mistaken for the only kind of morality that...
National Religious Freedom Day In The U.S. And The Vision of Jefferson
Perhaps it’s because we Americans are still getting over Christmas, or talking about the Super Bowl, but National Religious Freedom Day doesn’t get a lot of press. But indeed: January 16 is National Religious Freedom Day, adopted originally by the state of Virginia and now remembered annually by the White House. Penned by Thomas Jefferson, the Statute for Religious Freedom reads, in part: Be it enacted by General Assembly that no man shall pelled to frequent or support any religious...
Martin Luther King and The Birth of Freedom
Acton’s second documentary, The Birth of Freedom, begins with Martin Luther King, Jr.’s “I have a dream” speech and ends with an image from the Civil Rights movement. The documentary, which aired on PBS, explores how the speech is rooted deeply in the Western freedom project and how that centuries-old project is itself rooted in the Judeo-Christian tradition. If you watched one promotional about the documentary, it was probably the official trailer, but Acton also made a shorter teaser for...
Audio: Rev. Robert A. Sirico on the Foundations of Liberty
Acton Institute President Rev. Robert A. Sirico made an appearance on The Price of Business with host Kevin Price on Business 1110 KTEK in Houston, Texas. The conversation focused on the importance of liberty and the vital need to understand the foundations of our freedoms. You can listen to the interview via the audio player below. ...
MLK and the Natural Law
Martin Luther King, Jr. was fond of saying that the “arc of the moral universe is long, but it bends towards justice.” This was no thin, pragmatic account of rights-based egalitarian liberalism, says Derek Rishmawy, but rather a philosophically and theologically thick appeal to a divinely ordered and sustained cosmos. As Rishmawy notes, it is simply impossible to separate King’s denunciation of racism and segregation from his Christian confession and theological convictions about the nature of the universe: For King,...
Free Book Giveaway: Kuyper’s ‘Guidance for Christian Engagement in Government’
Christian’s Library Press has just released the first-ever English translation of Abraham Kuyper’sOur Program (Ons Program),under the titleGuidance for Christian Engagement in Government. Firstpublished in 1879,Ons Programserved as an outline for Kuyper’s Anti-Revolutionary Party. As Greg Forster argues in his endorsement, the work is as “equally profound and equally consequential” as Edmund Burke’s response to the French Revolution. Read additional praise for the bookhere. To celebrate the release,CLP will be giving awaythreecopies of the book. To enter, use the interface...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved