WASHINGTON — The White House is preparing to release a study assessing that policies pushed by the Democratic Socialists of America would cost $49 trillion over the next decade — as Republican attacks on the left-wing group’s rising prominence become a significant midterm issue.
The White House Council of Economic Advisers, led by economist Christopher Phelan, has drafted a report titled “The Real Cost of Socialism in America” evaluating seven major policies in the DSA’s “Workers Deserve More” platform released in July.
“This works out to a cost of approximately $355,000 per American household,” the CEA assessed. “That burden would have to be financed either by borrowing or by tax increases, both with dramatically costly [effects] to Americans pocketbooks, and CEA scored both paths.”
Almost all of the added cost comes from an estimated $49.4 trillion price tag for “Medicare for All,” assuming that there are no premiums paid by users.
The sum would be “partly offset by $2.8 trillion in administrative and $4.3 trillion in federal Medicaid savings.”
Advocates of single-payer insurance argue it would save individual Americans by replacing their private insurance policies, though opponents point to inefficiency, long wait times and limited services in other countries. The concept failed to gain traction in 2010 during the last major health overhaul debate.
Canceling all student debt and making undergraduate education free would cost $3.6 trillion, while ending ICE deportations and amnesty programs could cost $530 billion.
A DSA-proposed 32-hour work week would cost the feds about $920 billion, Green New Deal policies another $370 billion and a universal 1.5% cap on rent increases $16 billion.
A proposed wealth tax, meanwhile, would bring in $3.94 trillion over 10 years, assuming a 5% annual tax on wealth above $1 billion.
The CEA assessed ancillary effects of a wealth tax, writing: “Americans’ real wages fall 2.5 percent, about $1,700 a year for the median full-time worker. 1.1 million workers are unemployed and real GDP is 2.4 percent lower by the tenth year ($8.6 trillion over ten years). The price level is 2.8 percent higher. Stock market capitalization falls $3.8 trillion, about $2,100 from the median 401(k).”
The CEA estimate didn’t evaluate all of the costs or savings of DSA proposals, such as moving toward abolishing police and prisons, defunding the Department of War and abolishing the Senate.
The White House is publishing the report as Republicans focus on DSA-backed candidates who made surprising gains in primaries across the country — as Trump claims more centrist party members would bend to the energetic movement’s priorities if Democrats retake Congress.
“The Democrats’ embrace of communism and socialism is not only an existential threat to our nation’s fundamental values, but also a complete disaster for American families who would pay trillions to fund these out-of-touch ideas,” said White House spokeswoman Olivia Wales.
“President Trump will fight back at every turn — always choosing capitalism and freedom over communism and decline.”
The DSA did not immediately respond to a request for comment.
