đDump It: Trumpâs $2,000 Airdrop Idea Faces Major Roadblocks
Many analysts say President Trumpâs proposal to use tariff revenue to airdrop $2,000 to every American (except high-income earners) is almost impossible to implement â and hereâs why:
1ď¸âŁ It contradicts his promise to use tariffs to cut the deficit
⢠The CRFB estimates such payouts â based on Covid-era stimulus standards â would cost $600B per year, while tariff revenue is expected to reach only ~$300B/year.
⢠This would also limit the ability to reduce the federal deficit, potentially pushing U.S. debt to 127% of GDP by 2035, worsening the national debt crisis.
2ď¸âŁ It would fuel inflation
⢠The last U.S. stimulus airdrop in March 2021 ($1,400) boosted consumer spending â but inflation surged toward 10% shortly after.
⢠With inflation climbing back to ~3%, injecting more money now could heat the economy even further.
⢠Historically, the U.S. has never issued massive stimulus when the stock market is sitting near all-time highs.
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Analysts believe the Trump administration still publicizes this idea for two strategic reasons:
â To strengthen public support for tariff policies during a critical Supreme Court review.
â To prepare for worst-case outcomes â if tariffs are ruled illegal and must be refunded, Trump could rebrand the repayment as a âtariff dividendâ to citizens.
A bold idea â but far from reality.