Gerald Friedman Responds to the Romers on the Sanders Plan: Different Models, Different Politics

Differences between my evaluation of the impact of the Sanders economic program from that of the Romers reflect different views of the economy, the difference between a static model where national income and employment are largely fixed and a dynamic one where these are shaped by effective demand and are, therefore, susceptible to change in response to economic policy. There are no errors in arithmetic.* It is a fundamental difference in vision that divides our approaches; the same distinction that divided John Maynard Keynes from those he labelled the Classicals in his General Theory of Employment, Interest, and Money.…

Naked Capitalism
Gerald Friedman Responds to the Romers on the Sanders Plan: Different Models, Different Politics
Gerald Friedman, Professor of Economics, University of Massachusetts at Amherst