Trump’s $5,000 ‘dividend’ is really a $1.15 trillion hole in the deficit, top economist estimates
Penn Wharton's Kent Smetters says the payout, floated at the GOP's midterm convention, could add up to $1.35 trillion to the $40 trillion national debt.
President Donald Trump's promise to provide a $5,000 check to every American adult could result in a fiscal burden of approximately $1.15 trillion, according to top economist Kent Smetters. The cost estimate assumes the checks would be given to all American adults, without excluding the wealthy. Smetters' projections also consider the potential inflationary impact, estimating an increase of around 0.3 to 0.5 percentage points in headline and core inflation over the subsequent four quarters.
The proposed dividend would be financed through borrowing, given the lack of a clear funding source. The proposal comes amid a growing national debt and already substantial deficit, making the addition of a one-time payout particularly concerning.
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- Palantir cofounder and GOP donor says Trump's proposed $5,000 dividend is a 'bribe' businessinsider.com
- Who will receive Trump's $5,000 dividend? economictimes.indiatimes.com
- Does Trump’s $5,000 ‘dividend’ count as a bribe if we never get the money? theguardian.com
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