In an interview with teleSUR English, economist Gerald Friedman said that Democratic presidential candidate Bernie Sanders' economic plan would improve the lives of working class people by reducing income inequality along with taxing the country’s top income earners.
Friedman estimates that under Sanders’ proposed economic plan, income inequality in the United States would shrink thanks to the introduction of “progressive taxes, higher minimum wages, and fast economic growth.”
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During the interview, Friedman made the argument that in order to stimulate the economy and reduce income inequality, taxes must be raised on the country’s economic elite.
Under his proposal, Sanders would increase capital gains on the country’s top income earners by nearly 52 percent, which would then be allocated towards improved infrastructure, higher social security benefits, free college tuition and expanded health care.
In efforts to finance these initiatives, Sanders has also vowed to impose financial transaction taxes on Wall Street as well as tax increases on corporate profits.
“When you tax the rich to finance government spending, the money lost from rich people spending, is less then the money gained when the government is spending that money and putting it in the pockets of working people, which creates economic growth,” Friedman told teleSUR.
Friedman’s conclusions are part of a larger study, in which he examined the economic costs and impacts of the Vermont senator’s healthcare proposal, which he predicts will increase people's median income by more than US$22,000, create 26 million jobs, and would reduce unemployment levels to 3.8 percent,
Meanwhile, Friedman’s recent findings also coincide with endorsements from over 170 prominent economists, supporting Bernie Sanders’ proposal to break up big banks and bring justice to Wall Street.
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