Trump's $5,000 Dividend Would Reignite Inflation and Swell the U.S. Deficit, Economists Say
Economists said the checks could worsen inflation and add more than $1 trillion to the federal deficit.
- On Wednesday, President Donald Trump pledged $5,000 dividend checks for every adult American if Republicans retain control of Congress in the November midterm elections, speaking at the Republican National Convention in Dallas, Texas.
- Trump's proposed dividend checks would cost roughly $1.3 trillion to cover 270 million American adults, building on his previous proposals to fund distributions through import tax revenue.
- Brett House of Columbia Business School stated such initiatives are unlikely to become policy, as economists warn that injecting "mad money" would exacerbate inflation and spike borrowing costs.
- Garrett Watson of the Tax Foundation argued the president is "promising something that almost certainly can't be done," as any broad-based benefit program requires legislative approval from Congress.
- Meanwhile, the Treasury Department reported the U.S. national deficit nears $1.8 trillion, while total national debt stands at $40 trillion; experts warn that adding massive spending amid supply-side pressures risks economic crisis.
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25 Articles
The Independent
The Independent (US)Republicans were blindsided by Trump’s $5,000 dividend plan and say it won’t happen
Republicans have reportedly expressed doubts that plan will move forward
The American president's election bet on the Republicans - The objections of economists and the political targeting behind the announcement
Trump's $5,000 GOP-Win Dividend Could Be 'One of the Most Imprudent Uses' of $1.3tn, Economist Says
President Donald Trump has promised a $5,000 'Trump Dividend' payment to every adult American if Republicans keep control of both chambers of Congress in the 2026 midterm elections, a pledge economists say could cost between $1.2tn and $1.3tn and raise fresh questions over inflation and how it would be funded. The plan has drawn criticism from budget analysts, financial markets and some Republicans over its potential impact on prices and doubts …
The "Midterms" will take place on November 3.
What to know about Trump's pledge of $5,000 to 'every American' if GOP wins midterms
President Donald Trump promised a $5,000 "Trump dividend" payment to every US adult on Wednesday if his Republicans retain control of the House of Representatives and the Senate in the November 3 midterm…
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