White House: Democratic Socialists’ policies would add $49 trillion to federal deficits
The report comes ahead of the midterms amid voter concerns about Democratic Socialist candidates winning office.
The White House released an analysis this month estimating that policies in the Democratic Socialists of America’s agenda would add roughly $49 trillion to federal deficits over 10 years.
The Council of Economic Advisers’ summary report, The Real Cost of Socialism in America, examines the economic effects of eight policy areas from the organization’s 2026 “Workers Deserve More” program.
Spread across American households, the projected deficit increase amounts to approximately $355,000 per household over the decade, according to the analysis.
The council examined proposals for Medicare for All, student debt cancellation and free undergraduate tuition, universal rent control, a 32-hour workweek, and an annual wealth tax on billionaires. It also assessed immigration, climate, and policing policies.
Medicare for All accounted for most of the projected budget impact, at approximately $47.4 trillion. Canceling student debt and covering undergraduate tuition at public and private institutions would add another $3.6 trillion, the council estimated.
The council examined how paying for the proposals through borrowing or higher taxes would affect Americans.
If the government borrowed the money, everyday prices would more than double over 10 years and 30-year mortgage rates would rise above 12%, according to the analysis.
If the government raised taxes to pay for the proposals, workers’ hourly take-home pay would fall by 28.4%, the council projected. That would mean about $22,000 less in annual income per worker, in 2026 dollars.
The Democratic Socialists of America’s 32-hour workweek proposal would require employers to maintain weekly pay and pay overtime beyond 32 hours, increasing the cost of each hour of work. The council projected that the requirement would result in 4.2 million to 6.9 million fewer jobs.
The council estimated that universal rent control would leave the country with approximately 3.3 million fewer rental units after 10 years.
The council also examined proposals to reduce the number of police officers and shorten prison sentences, citing evidence linking those policies to higher crime rates where they have been adopted.
The report was followed by an October Center Square Voters’ Voice survey that found 55% of voters were concerned about Democratic Socialist candidates running for office and potentially winning their elections, as Zeale News previously reported ahead of the midterms.
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