ALBAWABA - The Democratic Socialists of America (DSA)-backed programs could increase US government deficits by almost $49 trillion over the next ten years, according to a new White House economic assessment, intensifying the political fight over socialism ahead of the 2026 midterm elections.
On October 1, President Donald Trump's Council of Economic Advisers (CEA) published a report titled The Real Cost of Socialism in America. It looks at seven significant initiatives from the DSA's 2026 agenda and projects how much money they will cost between 2027 and 2036. The White House
The CEA estimates that the reforms will initially increase government deficits by roughly $52.8 trillion. According to the paper, a suggested wealth tax would raise an estimated $3.94 trillion, bringing the net number to almost $49 trillion, or about $355,000 per US household. The White House
The CEA projects that Medicare for All will cost the federal government around $47.4 trillion over a ten-year period, making it the largest component. A 32-hour workweek was expected to cost $920 billion, while canceling student debt and offering free college was estimated to cost $3.6 trillion. Included were national rent restrictions, Green New Deal initiatives, and immigration and amnesty proposals.
FOX BIZ: Report warns of $49 TRILLION socialism price taghttps://t.co/V7RImaTyqp pic.twitter.com/56rqoRGrb7
The Trump administration cautioned that borrowing money to fund the plans may raise 30-year mortgage rates above 12% and significantly raise inflation and the national debt. Alternatively, the CEA's economic modeling suggests that supporting them through taxes might lower hourly wages after taxes by 28.4%. The White House
But rather than being an impartial Congressional Budget Office review, the numbers are estimates from the White House. Additionally, rather than necessarily reflecting completely new expenditure across the US economy, the $49 trillion figure represents higher federal fiscal costs. For instance, under Medicare for All, some of the healthcare expenses currently covered by private insurance premiums and other sources would be replaced by government spending.
The Trump administration is attempting to use the expanding impact of democratic socialist programs as a key campaign topic, and the report was released weeks before the midterm elections in November.
Osama Ali is an accomplished English content writer and news writer. With a strong command of language and a flair for storytelling. His expertise lies in delivering accurate and well-researched news pieces, ensuring that information is presented clearly and concisely. A dedicated professional who stays up-to-date with the latest trends in the English writing industry, consistently producing high...
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