It’s also worth noting that Trump’s description of the tariff program, in typical Trumpian fashion, is a bit hyperbolic. While tariffs did generate revenue, the economic effects have been mixed, with some industries suffering due to retaliatory tariffs imposed by other countries. The overall impact of tariffs on the American economy is still a topic of debate among economists.
The Real Costs of the Payout
Let’s talk about the real cost of this proposal. According to various economists, the cost of giving out $2,000 per person would significantly strain the federal budget, which is already facing huge deficits. With the U.S. government’s debt currently at $37 trillion, the idea of adding another $300 billion to $500 billion in expenses may not be sustainable, especially considering that tariffs have not generated enough revenue to cover such an amount.
Additionally, the payout would likely lead to inflationary pressures, as it would essentially increase the money supply in the economy. This could further drive up prices, offsetting any temporary benefits people might feel from receiving the dividend.Continue reading…
