The problem, as always, with socialism is that sooner or later you run out of other people’s money. In the case of Bernie Sanders’ policy proposals the country would need to start borrowing immediately.
An analysis by the Tax Policy Center finds that Bernie Sanders’ proposals would cost $33.3 trillion over the next ten years. That amount would be only party offset by $15 trillion in new taxes:
Over the next 10 years, the Sanders plan would increase federal revenues by $15.3 trillion but also increase federal outlays by $33.3 trillion, growing the cumulative budget deficit by about $18 trillion or roughly 7.5 percent of GDP (table 2).
The plan is structured to guarantee that an overwhelming majority of people benefit (in the short run) from the transfers and deficit spending:
Measured as a share of income, that additional support would be most beneficial to low-income households. All groups would receive higher net transfers (transfers less taxes) except for those in the top 5 percent of households.
If unfunded, the deficit increase would raise interest payments on the national debt by over $3 trillion over the next ten years. The dramatic increase in government borrowing would crowd out private investment, raise interest rates, further increase government borrowing costs, and retard economic growth. In combination with the dramatically higher tax rates, which would reduce incentives to work, save, and invest, the negative macroeconomic effects of the plan could be severe (Sammartino et al. 2016). Our estimates do not account for those macroeconomic feedback effects.