P.M.
| President Donald Trump is considering returning 20 percent of the savings identified by the Department of Government Efficiency (DOGE) directly to taxpayers while using another 20 percent to pay down government debt. View in browser  by John Carney – Breitbart Economics EditorAlex Marlow – Breitbart Editor-In-Chief February 21, 2025 DOGE Dividends Won’t Be Inflationary President Donald Trump is considering returning 20 percent of the savings identified by the Department of Government Efficiency (DOGE) directly to taxpayers while using another 20 percent to pay down government debt.“There’s even a — under consideration, a new concept where we give 20 percent of the DOGE savings to American citizens and 20 percent goes to paying down debt,” Trump said earlier this week.Some analysts argue that these “DOGE Dividends” could contribute to inflation. However, the economic impact of this policy differs significantly from the Biden-era stimulus measures that drove inflation to four decade highs.  Elon Musk holds a chainsaw reading “Long live freedom, damn it” during the annual Conservative Political Action Conference (CPAC) in Oxon Hill, Maryland, on February 20, 2025. (SAUL LOEB/AFP via Getty Images)The Biden administration’s stimulus checks fueled inflation because they were financed through deficit spending and an expansion of the money supply. The government borrowed trillions to send out checks, while the Federal Reserve increased its balance sheet by purchasing Treasury bonds and slashed interest rates. Essentially, the Fed monetized the cost of the Biden stimulus.In contrast, the DOGE refunds are funded by cuts to excessive and inefficient government spending. Instead of injecting new money into the economy, this policy reallocates existing funds that were previously spent on government programs.Steve Chiavarone of Federated Hermes underscored this on Bloomberg TV Friday, explaining why DOGE dividends won’t be inflationary.”They can’t be inflationary in the short-run because I’ve already pre-cut that money. I’m just shifting it from one part of the economy to the other,” Chiavarone said.  Reducing Government Payrolls Is DisinflationaryCutting the number of government employees and private sector employees receiving government funding is also disinflationary. Government employees, particularly those in stable bureaucratic positions with generous pensions, generally have a high propensity to spend. If some of these salaries are redirected into one-time payments to taxpayers, a greater share of funds will be saved rather than spent, which would further dampen inflationary pressures.Another factor is the plan’s allocation of 20 percent of the savings toward reducing the national debt. Paying down government debt reduces the need for new borrowing. Lower debt issuance can lead to reduced longer-term interest rates, making capital more accessible for private sector investment. A lower debt burden also reduces the risk of inflationary pressures associated with excessive government spending.The economic environment today is also different from the conditions during the early years of the Biden administration. At that time, pandemic-related supply-chain disruptions and labor shortages constrained production. The Biden administration’s war on fossil fuels hindered energy production, and its massive increase in regulations retarded investment. So, when stimulus checks increased household demand, this imbalance contributed to higher prices.The current economy, however, does not face the same supply constraints. Factories are operational, supply chains have stabilized, and the labor force has recovered. Trump is taking measures to free the economy from the shackles of Bidenomics: pushing for more energy production, making tax cuts permanent, and rolling back regulation. As a result, DOGE refunds will not have the same inflationary impact as past stimulus payments.Consumer behavior also plays a role in determining inflationary effects. COVID-era stimulus checks were designed to boost consumer spending, particularly among lower-income households and workers who had been displaced by the pandemic. The DOGE refunds, by contrast, would arrive at a time of historically low unemployment, making concentrated demand surges less likely. Additionally, one-time payments are less likely to be spent immediately compared to continuous income, meaning a portion may be saved or used to pay down personal debt, reducing the inflationary impact.Another consideration is the broader impact of reducing inefficient government spending. Inefficiency in government expenditures often leads to higher costs as excessive spending competes for limited resources. Cutting wasteful programs can reduce excess demand in certain sectors, easing inflationary pressures rather than exacerbating them. And as Chiavarone said on Bloomberg, the private sector is likely to use the money in a much more productive way than the government.Finally, sending out the DOGE dividends or efficiency refunds could bolster public support for budget cuts, allowing the Trump administration to make even deeper cuts. That reduced spending would also tend to reduce inflationary pressures.Far from fueling inflation, Trump’s plan reins in wasteful spending, reduces debt, and returns money to taxpayers without expanding the deficit. That’s a win for fiscal sanity and the taxpayer. |
02/21/2024
That sounds good – and – I know a lot of people could put it to good use; but, what about the debt – trillions – is there anyway we could use this money to bring down the debt?
ttps://therightbriefing.com/elon-musk-to-discuss-potential-doge-dividend-5000-per-taxpaying-household-refund/
- Posted by trbwriter
James Fishback, CEO of InvestAzoria, has set the political world on fire with his bold proposal for a “DOGE Dividend”—a concept that could see American taxpayers receiving tax refund checks funded exclusively by the savings generated through the Department of Government Efficiency (DOGE).
In a statement that’s already drawing attention from lawmakers and financial analysts alike, Fishback outlined how the DOGE Dividend would work: a portion of the billions in taxpayer savings brought in by DOGE’s aggressive efforts to root out waste and corruption within the federal government would be used to issue a tax refund check to every American taxpayer.
Fishback estimates that this could amount to as much as $5,000 per household—a significant windfall for families already burdened by high taxes and government inefficiency. In an era of skyrocketing national debt and inflation, the idea of turning government savings into direct benefits for taxpayers strikes a chord with many conservatives looking to see more accountability in Washington.
The DOGE initiative, which is being championed by Elon Musk and overseen by the Trump administration, has already started delivering substantial savings by cutting wasteful spending, eliminating unnecessary contracts, and reducing the size of bloated federal agencies. Musk, known for his advocacy of efficiency and his ability to shake up entrenched bureaucracies, has promised to continue driving reforms, and Fishback’s idea would take these efforts a step further by directly returning some of the savings to the taxpayers.
Musk himself confirmed the seriousness of the proposal, stating that he “will check with the President” about the possibility of implementing the DOGE Dividend. This suggests that the concept could gain traction within the Trump administration, which has made cutting government waste and reducing the deficit central to its agenda.
In addition to the dividend proposal, Fishback also released a document titled “The Case for a DOGE Dividend,” where he argues that this move would not only provide financial relief to American families but also serve as a powerful incentive for further fiscal responsibility in Washington. By making government efficiency directly benefit taxpayers, Fishback believes it could create a long-term cycle of accountability and savings that would fundamentally change how Washington operates.
If Fishback’s vision for the DOGE Dividend gains momentum, it could mark a significant shift in how government spending is viewed—no longer just an abstract issue, but something that directly impacts Americans in a tangible way. And with Musk’s backing, it’s a proposal that may not be so easily dismissed.
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I would rather pay the debt to save our country and our savings.
kommonsentsjane
kommonsentsjane 