Trump: Doge could return 20% to taxpayers and heat inflation

Trump: Doge could return 20% to taxpayers and heat inflation

President Donald Trump has announced that it is considering a plan that provides for 20 % of the savings to be returned to the American citizens. This measure could complicate the already ongoing challenges of inflation in the country.

The proposal of the Dige dividend

"A new concept is even taken into account in which we distribute 20 % of the dog savings to the American citizens and 20 % are used to reduce debt," said Trump in his comments at the Fii Priority Summit in Miami on Wednesday.

economic concerns

The idea of a so-called "Doge dividends", a payment that is sent to every taxpayer and is to be financed from the Doge savings, was publicly proposed on Tuesday by a user on Musks Social Media platform X. Musk replied to the contribution that he would "keep up with the president".

Although Trump does not reveal any specific details, this payout could heat up the US economy, while inflation continues to stubbornly above the ideal target of the 1s of 2 %-it rose in January to 3 %, the highest level since June 2024.

payments during pandemic

This would not be the first time that Americans receive payments directly from the federal government. During the pandemic, over 476 million payments of a total of $ 814 billion went to households. During Trump's first term in office, justified Americans received $ 1,200 in March 2020 and $ 600 in December 2020. After ex-President Joe Biden took office in March 2021, another round of auxiliary funds of $ 1,400 was distributed.

Over a year after the last payments, consumer prices in the US

causes of inflation

Various factors have contributed to the current inflation in the USA, including supply chain problems, pandeme -related demand shifts and the invasion of Russia in Ukraine in 2022. However, some economists are responsible for extensive state expenditure that the economy is overheated. Researchers of the St. Louis fed estimated that state stimuli was responsible for 2.6 percentage points of the annualized inflation rate of 7.9 %, which was found in February 2022.

Although the US economy is now in a completely different location than in the months after pandemic, when many people stayed at home and numerous companies came to a standstill, the Federal Reserve continues to fight against inflation after pandemic. The consumer prices rose by half a percentage in January alone since August In 2023 and a potentially disturbing sign is that inflation goes in the wrong direction.

In a Interview on Tuesday blame the inflation for the bidea-administration. "Inflation is back," said Trump. "I had nothing to do with it."

prospects for combating inflation

Trump promised to tackle inflation on the “first day” of his presidency. But not only the "Doge dividends" payments could endanger this plan: Economists warn that some economic priorities of the Trump administration, like Zölle and mass deportation , the price for everyday goods and services could drive up.

Nevertheless, some economists agree that the fight against inflation cannot be obtained without reducing public debt. State debt in the United States in the financial year 2024 was $ 35.5 trillion, an increase of $ 1.4 trillion compared to 2023, according to the Ministry of Finance. In addition, the ratio of public debt to GDP in the financial year 2024 increased by 2 percentage points compared to the previous year, which is a sign that the debt burden of the United States is increasingly on the economy.

Trump claims that Doge, which he launched last month by executive regulation, "saves billions of dollars every day" by revealing cases of fraud and abuse in the government.

The reporting was supported by CNNS Elisabeth Buchwald and Elise Hammond.