James K. Galbraith’s letter is rather disappointing. Sure, you can get a burst of growth following a deep downturn if you apply sufficient fiscal stimulus. But Friedman posited a 5.3% real growth rates over 10 years. That’s ludicrous: at some point stimulus feeds into prices after you hit short term capacity limits. Galbraith’s treatment of the subject is misleading and embarrassing.
There’s nothing standard about Friedman’s methodology.
I repeat that the 5.3% figure was Gerald Friedman’s creation and has not been explicitly showcased by the Sanders campaign to my knowledge. The policy director of the Sanders campaign has however correctly portrayed Friedman as supporting their plan.