This radical money policy would easily pay for Bernie Sanders’ Medicare for all


The Week has the article This radical money policy would easily pay for Bernie Sanders’ Medicare for all.

Now, it would still be prudent for Sanders to match some of the new spending with new taxes because as the economy improves, there will be less wiggle room to spend. But he hardly needs to match all of it. Reasonable assumptions suggest his plan would already result in a bit over $1 trillion in new revenue.

The article depends on the premises of Modern Money Theory (MMT), but it also emphasizes the reality of future inflation issues.

This article also fails to talk about the savings from eliminating the private health insurance overhead. The assumption that the country has to pay about the same amount of money for health care after single-payer as the country did before, is not realistic.

There also needs to be a discussion of one of the ways inflation was kept in check during WWII. That is the selling of war bonds. The purpose of war bonds was to encourage workers to put some of their earnings aside for a while instead of trying to spend it on goods that the economy could not provide at that moment. I don’t know how you do the equivalent of war bonds in a time of peace. That’s why we need to start thinking about this now.

I find this article to be a nice complement to my previous blog post Robert Reich: A Handful of Ultra-Rich Families Are Bleeding the Country Dry.

Leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.