White House Council Estimates DSA Policies Would Cost $49 Trillion

The White House Council of Economic Advisers (CEA) has drafted a report estimating that policies advocated by the Democratic Socialists of America (DSA) would cost approximately $49 trillion over the next decade. The report, titled “The Real Cost of Socialism in America,” analyzes seven major policies from the DSA’s “Workers Deserve More” platform.

According to the CEA, the proposed policies would equate to a cost of about $355,000 per American household. The council assessed that this burden would need to be financed through borrowing or tax increases, each carrying significant financial consequences for households.

The largest contributor to the estimated cost is the “Medicare for All” proposal, which the CEA projects at $49.4 trillion over ten years, assuming no user premiums. The report notes potential offsets, including an estimated $2.8 trillion in administrative savings and $4.3 trillion in federal Medicaid savings from a single-payer system.

Advocates of single-payer health insurance contend it would save individuals money by replacing private insurance plans. However, opponents raise concerns about potential inefficiencies, extended wait times, and limited services, citing experiences in other countries. The concept has previously faced challenges in gaining legislative traction.

Other DSA policy proposals analyzed include the cancellation of all student debt and free undergraduate education, estimated to cost $3.6 trillion. Ending ICE deportations and amnesty programs could cost $530 billion. A proposed 32-hour work week was estimated to cost the federal government about $920 billion, while Green New Deal policies were assessed at $370 billion, and a universal 1.5% cap on rent increases at $16 billion.

The report also examines a proposed wealth tax, which, assuming a 5% annual tax on wealth exceeding $1 billion, is projected to generate $3.94 trillion over 10 years. The CEA’s analysis of ancillary effects of such a tax suggests a 2.5% decrease in real wages for Americans, amounting to about $1,700 annually for the median full-time worker. It also forecasts 1.1 million job losses, a 2.4% reduction in real GDP by the tenth year ($8.6 trillion over a decade), a 2.8% increase in the price level, and a $3.8 trillion decrease in stock market capitalization, affecting 401(k)s by approximately $2,100 for the median holder.

The CEA’s estimate did not encompass all potential costs or savings associated with DSA proposals, such as those related to abolishing police and prisons, defunding the Department of War, or abolishing the Senate.

This report is being released as Republicans increasingly focus on DSA-backed candidates who have seen success in primary elections. White House spokesperson Olivia Wales stated, “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.” President Trump has indicated he will oppose these policies, favoring capitalism and freedom.

The DSA has not yet responded to a request for comment.