Robert Reich: Why the Critics of Bernienomics Are Wrong
http://readersupportednews.org/opinion2/277-75/35531-why-the-critics-of-bernienomics-are-wrong
4. But yesterdays New York Times reported that two of your colleagues at Berkeley found an error in the calculations underlying these estimates. They claim Professor Gerald Friedman mistakenly assumes that a one-time boost in growth will continue onward. They say he confuses levels of output with rates of change.
My esteemed colleagues see only a temporary effect from moving to a single-payer plan. But that view isnt shared by economists who find that a major policy change like this can permanently improve economic performance. After all, World War II got America out of the Great Depression permanently.
5. So you think Bernies plan will generate a permanent improvement in the nations economic performance?
Yes. Given that healthcare expenditures constitute almost 18 percent of the U.S. economy and that ours is the most expensive healthcare system in the world, based on private for-profit insurance companies and pharmaceutical companies that spend fortunes on advertising, marketing, administrative costs, high executive salaries, and payouts to shareholders its not far-fetched to assume that adoption of a single-payer plan will permanently improve U.S. economic performance.