Government Economists: What Socialist U.S. Economy Would Look Like

If the United States were to adopt the socialist policies of Venezuela, the move would slash the economy by 40 percent—or $24,000 per year for the average American, according to a report by the president’s Council of Economic Advisers.

“Coincident with the 200th anniversary of Karl Marx’s birth, socialism is making a comeback in American political discourse,” says the council’s report, “The Opportunity Costs of Socialism.”

“Detailed policy proposals from self-declared socialists are gaining support in Congress and among much of the electorate,” the report continues.

The report specifically cites so-called “Medicare-for-all” proposals, which essentially would be a single-payer health care program. The study found that if Medicare-for-all were financed out of current federal spending—without additional borrowing or tax increases—it would eat up more than half of the entire federal budget.

That would require drastic cuts in Social Security and in national defense to pay for it, said Kevin Hassett, chairman of the president’s Council of Economic Advisers, told reporters in a conference call Tuesday.

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