The White House affirmed that the agenda promoted by the Democratic Socialists of America (Democratic Socialists of America, DSA) would incur a net cost of over 49 trillion dollars over 10 years, which would amount to about 355,000 dollars per every American household.
The estimate appears in the report The Real Cost of Socialism in America , published by the Council of Economic Advisers and disseminated on the official portal.
According to the document, the analysis evaluated eight programmatic pillars attributed to the DSA: total cancellation of student debt and free university tuition; open borders and immigration amnesty; abolition of the police and the prison system; Medicare for All; universal rent control; Green New Deal; a 32-hour workweek; and an annual 5% tax on the wealth of billionaires.
The report specifies that seven of those measures can indeed be calculated in terms of federal budgets and, together, they yield a net impact of 48.9 trillion dollars between 2027 and 2036.
The most significant proposal would be Medicare for All, with an estimated cost of 47.41 trillion, followed by student debt cancellation and free college, with 3.60 trillion. The study adds that a wealth tax would generate around 3.94 trillion, but it would not cover the remainder of the projected spending.
The White House also maintains that if this package were funded with more debt, the yields on 10-year Treasury bonds could rise by 5.8 percentage points, exceed 10%, and push mortgage rates above 12%. It also warns of double-digit inflation and an additional cumulative price increase of between 130 and 160 percentage points over a decade.
Yes, on the other hand, if the cost were covered by taxes, the report estimates a permanent reduction of 14.6% of real annual GDP, a contraction of nearly 19.2% of output per year, and an average loss of $22,000 annually in household income due to the reduction of after-tax hourly wages.
The official White House page summarizes the message in political and domestic terms: it states that “the real cost of socialism for your family” would be around $355,000 per household and presents this calculation as a warning about the impact that such a program would have on the deficit, taxes, wages, inflation, and credit.
The release of the report aligns with a broader rhetorical offensive by Washington against socialism and the radical left.
In recent days, the State Department released a message from Marco Rubio against "radical leftism", while Senator Rick Scott again used Cuba as an example of socialist failure and Congressman Carlos Giménez denied that such ideas could "take root" in the United States.
Related videos:
Filed under: