Wall Street Strikes Back Against Bernie Sanders
… As I have written before, the one truly transformative idea of the Sanders’ campaign is his plan to nationalize healthcare by providing Medicare for all. This is his only proposal which requires raising direct taxes on anyone making less than $250,000, and it would require putting a lot of money that used to go to health insurance companies in the coffers of the federal government.
What makes Sanders proposal stand out the most on this chart, and push his bubble way to the right, is that he is calling for increases in tax receipts when government receipts are already historically high. But there is no agreement from economists on whether high government receipts, at least as a percentage of GDP, is necessarily a bad thing.
What’s more, nationalizing healthcare is not the same thing as taxing people to subsidize the military or the poor. The traditional economic argument against moving an industry from private hands to a public one is that the private sector is more efficient than the government. But in the realm of healthcare, this is simply not true. The United States spends more on healthcare as share of GDP, with worse outcomes, than any other industrialized country. It’s also the country where private industry has the most power….