Trump’s $5,000 dividend proposal could add $1.2T to federal deficit, analysts say
The nonpartisan CRFB estimates the plan would cost over $1.2T and more than double the federal budget deficit
CEI’s Ryan Young was cited by Fox News regarding Trump’s new dividend proposal.
Competitive Enterprise Institute Senior Economist Ryan Young told FOX Business, “President Trump’s $5,000 check proposal is not going to happen, even if Republicans win the midterms.”
Young said that Americans are concerned about the $40 trillion national debt and that the plan would “add more than $1 trillion to that debt in one fell swoop.”
He also warned that the “checks conflict with Trump’s desire for lower interest rates. The extra cash in circulation would raise inflation, which the Fed would likely have to counter with higher interest rates.”
“Over and above anything the Fed does, a trillion dollars in new spending would raise interest rates on government debt by making the government’s financial situation even worse. Reluctant bond buyers would demand higher interest rates for taking on more risk.”
Read the full article at Fox Business.