LBJ Professor James Galbraith talks with Bloomberg about how economic policy plays in politics has changed.
"Democratic presidential front-runner Bernie Sanders is pledging to spend big and fund it all with new taxes, drawing flak from rivals who say his budget numbers don't add up.
"But bond investors say they don't really need to. And more and more economists are inclined to agree.
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"Since the early 1980s, 'fiscal policy was withdrawn from the field — except in a major emergency — and the economy grew on waves of bank lending,' said Galbraith, whose father John Kenneth Galbraith was one of America's most famous economists and served under four Democratic administrations from Franklin Delano Roosevelt to Lyndon Johnson.
"Take that away and 'you've got to have other things driving the economy, creating wages and jobs,' said Galbraith. 'And this is going to show up in the budget on the fiscal side.'"