Economist Argues 'Pie in the Sky' Sanders Will, in Fact, 'Make Economy Great Again'

[eridani]

http://www.commondreams.org/news/2016/03/30/economist-argues-pie-sky-sanders-will-fact-make-economy-great-again

Pollin's analysis builds on previous research, including his own. It takes a big-picture look at the potential impact of Sanders' policies, refuting claims made by Clinton and her supporters that they would stymie job and economic growth.

When discussing the minimum wage increase, Pollin dismisses the idea that employers would not be able to absorb the cost of the wage increase. Citing a recent study by PERI colleague Jeannette Wicks-Lim and himself, Pollin states, "even fast-food restaurants, which employ a disproportionate share of minimum wage workers, are likely to see their overall business costs rise by only about 3.4 percent per year during a four-year phase-in for a $15 minimum wage."

Pollin argues that the overall economy will benefit "from the gains in equality tied to the minimum-wage increase," explaining that "greater equality means working people have more spending power, which in turn supports greater overall demand in the economy."

Referencing a paper that he along with a team of UMass economists published earlier this month, Pollin also concludes that the Inclusive Prosperity Act co-sponsored by Sanders in the Senate and U.S. Rep. Keith Ellison (D-Minn.) in the House, "could conservatively generate around $300 billion per year in new government revenue" through a Financial Transaction Tax (FTT), which "would be more than enough to finance in full the Sanders proposal to provide free college tuition for all U.S. students."

[rhett o rick]

1. Great again for the lower 99%, while Clinton's plan will make it great for Goldman-Sachs

and the billionaires.