Trump suggested utilizing Dogecoin savings for issuing refund checks to citizens, potentially rekindling inflation.
" Dezzy here, breaking down the latest buzz at the FII Priority Summit in Miami. Trump suggested a fresh concept, tossing around the idea of a so-called "DOGE Dividend." Basically, they'd doled out 20% of the DOGE savings to American citizens, with another 20% gonna tidy up the national debt.
This "DOGE Dividend" sparked interest last Tuesday on Musk's social media platform, X. Musk supposedly said he'd give it the old college try and talk to the Prez about it. Even though Trump gave the lowdown lightly, the proposal's incoming influx of cash could put a smidgeon of heat back into the US economy. You know, that time when inflation's been lingering stubbornly above the Fed's desired 2% target. It swung up to 3% in January, notched its highest since June 2024.
Now, this wouldn't be the first monetary handout from the federal mothership. Remember, more than 476 million households bagged around $814 billion in checks during the pandemic. And during Trump's first term, Americans savored a $1,200 check in March 2020, plus $600 in December 2020. Biden's team continued the trend by dishin' out $1,400 checks when they took over in March 2021. Whoa, don't forget, consumer prices in the US hit a 41-year high just about a year later!
Experts on economics attribute the recent inflation spike to multiple factors: supply chain disruptions, shifts in pandemic-induced demand, and Russia's '22 invasion of Ukraine. But for some economists, aggressive government spending stoked the flames of economic overheating. Looking at data from the St. Louis Fed, those wacky govvie checks supposedly accounted for 2.6 percentage points of the 7.9% annual inflation rate recorded in February '22.
Even though we're light-years away from the pandemic days with business closures left and right, the Fed's still wrestling with post-pandemic inflation, so consumer prices sneaked up 0.5% in January alone - the biggest monthly jump since August '23.
In an interview with Fox News on Tuesday, Trump put the finger pointedly on the Biden administration for the situation. "Inflation's back," stated Trump. "I got nuthin' to do with it." During his reign, Trump swore to crush inflation on day 1. But with the DOGE Dividend propositions and other economic priorities in the mix, like tariff heft and mass deportations, some economists warn about the peril of inflated good and service prices.
Economists voice concern about caging the inflation battle without first tackling the government's debt. By the end of the '24 fiscal year, the US public debt triggered $35.5 trillion, a not-so-merry $1.4 trillion increase from '23, per Treasury Department records. And somehow, the debt-to-GDP ratio inked up by a cooling 2% points in '24.
Trump has commented that DOGE, his brainchild, is allegedly sparing the taxpayers billions of bucks every single day, thanks to locating wized-up instances of fraud. But remember, some analysts mull that Trump's economy plans may set the stage for an upswing in everyday goods and services prices.
Sources:
[1] U.S. National Debt in 2024 | U.S. Federal Debt - World Population Review (worldpopulationreview.com)
[2] 2025's National Debt: Projected Growth and Impact - U.S. News (usnews.com)
[3] Biden's stimulus checks: How much money can you expect? (cbsnews.com)
[4] The Causes and Consequences of Inflation: Classroom Perspective and Perspective on Market Forces - (federalreserveeducation.org)
[5] Personal Savings Rate - FRED (fred.stlouisfed.org)
[6] Genuine Progress Indicator (GPI) 2022 Summary - GPI - Redefining Progress (gpiatlas.org)
[7] Real and Nominal GDP Growth - Survey of Professional Forecasters' Survey: Blue Chip Forecasts (stlouisfed.org)"
- At the FII Priority Summit discussion, Dezzy mentioned the idea of a "DOGE Dividend," suggested by Trump, which could potentially revitalize the US economy in 2023 by distributing a portion of DOGE savings to citizens and reducing national debt.
- As economists ponder over the potential impact of the "DOGE Dividend," they may consider the ratio of the increase in consumer prices to the US GDP, which saw its biggest monthly jump since August 2023, as a key indicator.
- In light of Trump's proposed "DOGE Dividend" and other economic priorities, some analysts warn about the potential consequences on the ratio of average inflation to the Federal Reserve's 2% target, which has been stubbornly lingering above the desired level since 2023.
